Cellnex Telecom, S.A. (CLNX) Earnings Call Transcript & Summary

Good afternoon, and thank you so much for attending our Capital Markets Day today. Happy to see that almost everyone has a chair. So that's a good start. Cellnex has been and continues to be, in our view, one of the most exciting projects development in Europe in recent years. We have created a sector. We have seen some massive opportunity -- and also we believe that also we have demonstrated our ability to adapt to a changing environment. Today, our Chairperson Anne Bouverot, will provide you an update on our strength and governance. Followed by opening remarks by our CEO, Marco Patuano, on our next chapter. Our Chief Strategy Officer, Vincent Cuvillier, will give you details on our strategic positioning, our Chief Operating Officer, Simone Battiferri will explain to you our levels of organic growth and efficiencies going forward. Our CFO, Raimon Trias, will explain to you our enhanced exposure, our financial strategy and our capital allocation priorities. And then also, we will be sharing with you something that you might have seen this morning, it's an updated medium-term guidance, and then we will follow in with our closing remarks by our CEO before we open a Q&A session. So thank you so much again without further ado, Anne, the floor is yours.

Good afternoon. Good afternoon, everyone. It is my pleasure to address you today in my capacity as Chairperson of the Board of Directors of Cellnex. I would like to start with a few words on why Cellnex matters. There's continued growing demand for connectivity in Europe from consumers and from businesses. And the digitization of society and the economy is continuing to move ahead with artificial intelligence already becoming the next growth driver. As a result, our customers, telecom operators need to expand and densify their networks. And as Europe's leading -- as Europe's leading neutral wireless telecoms infrastructure operator, Cellnex has a vital role to play in enable this. By being neutral, we gain the trust of our customers and by enabling co-location and being efficient, we can benefit our shareholders, our customers and the environment. Since our IPO in 2015, Cellnex has achieved significant growth through M&A. But now is the time to focus on operational efficiency and shareholder returns. This strategy and focus starts from the Board of Directors. And this is with the strategy and intent in mind that we have selected and appointed our new CEO, Marco Patuano back in June. We are very pleased with his work. I'm sure you are as well. And today, you will hear from the team he has put in place an experienced and energized management team under his leadership. Let me add a couple of things about governance, as you can see on the slide. First, we created a new capital allocation committee at Board level. This is a committee whose role is to review and scrutinize management's proposals for capital allocation, exactly that, so that they can then be put forward for approval by the Board. Now that Cellnex is on a path to generate significantly more cash. It's a very important role to have, and we will ensure we return significant amounts to you, our shareholders. Also, I want to highlight that management incentive plans as put in place by the Board are very strongly and firmly aligned with shareholder value creation. The targets of the long-term incentive plans are based on meeting or exceeding accumulated free cash flow, total shareholder returns and of course, ESG. With this, I'm very pleased to give the floor to Marco.

Thank you, Anne. Thank you to all of you for being here. It's a pleasure to see you, some of you to see you again, some more white hairs, but still here. So we are starting the Phase 2 of this project, which is not a revolution of the project. It's just an evolution of the project. It's the normal Phase 2 of the project, and it's an industrial chapter. So One Cellnex, why One Cellnex? Because -- we started in 2015. The history of the Tower sector in Europe starts basically in 2015 in Italy and Spain in this moment launched the first TowerCo's. And since 2015 to 2023, it has been a very impressive journey, growing fantastically in terms of industrial indicators, the assets, but also in terms of total shareholder return, total shareholder return that in any case has been more than 15% a year. What is towers -- what is Cellnex Tower today before the beginning of the Phase 2? Well, it's a company of more than 1,100,000 towers. It's more than 10,000 nodes of active equipment, more than 110 edge data centers, more than 36,000 kilometers -- and we're prepared with 12 markets, I would say, 11 markets because, as you know, we performed -- we signed the sale of Ireland. But let's say, 12 markets until this morning. So what is all about this Phase 2? Well, working on team and organization, almost -- only a few months ago, many people were asking me, if missing some of the founders would have been catastrophic for Cellnex or not? Well, we are still here. We're still alive, the company's more than single people. And you will see acting the new CSO, Vincent, the new Chief Operating Officer, Simone, a Telecom Engineer, working with me since sort of 20 years. The new CFO, Raimon, he is coming from the world of the private equity, not necessarily from the world of telecommunication, but in a world where every penny counts. And then we have more other people. There is Daniel, the regulatory guy. There is some other people that were with us. But most importantly, not only technical expertise and not only industrial profile, but we changed also our organization. We've moved up the CEOs of the countries the life of the company, the life of an industrial company happens in the country. It doesn't happen in the headquarter. The headquarter is a sort of a need that you have to pay for. But where is the life is in the country. So now the country CEOs are more empowered, and they are a permanent member of the Executive Committee. We retuned the strategy. This is something that I will leave to Vincent to go through and we've been working on excellent industrial approach. This is what Simone will tell you very much in detail and very much with practical elements. So making an industrial change is not something theoretical. It's something very, very practical. So what is the next chapter? Well, one, very simple operational value creation. We have to tell you and to explain you how secure is our growth, both short term and long term. There is something that is very unique in Cellnex, the long-term growth. Second, we have to be more efficient. We had a plan of -- an efficiency plan, and we are moving on top of the efficiency plan. I remember a time ago, when we -- many of you were questioning our 2025 target. Is going Cellnex to be able to achieve the 2025 target? Well, if we don't do nothing, the answer you would have been right. The answer would have been no. So now we are going to explain what we are going to do in order to be the appointment in 2025 and to be more performing in 2027, with the margins up from 59% to 64%, and to increase our cash conversion. A part of the increase of the cash conversion comes from the reduction of our very important BTS program, as you -- most of you know. But what we plan is to have a 2027 free cash flow generation, which is going to be 8x the 1 in 2023. Why this? Because we are working on shareholder value. So we are going to generate significant cash, this significant cash made organically and inorganically. This morning, we announced the sale of Ireland. I think that we all agree that price was very good, EUR 971 million. It's a sort of 24x 2024 EBITDA after lease, so quite a good price. But you will see that it's not only because of our need of cash, which would have been eventually something relatively short term to solve it's a matter of being consistent with our message, and you will see in the coming moment. So we have to set a long-term leverage target we set 5x to 6x. Why 5x to 6x because it's responding to 2 things. One, we need to be permanently investment grade, but we need some flexibility in bad times, we can go to 5x, to be more prudent in good time or if something very attractive comes, we can go to 6x, but we want to stay investment grade. This is extremely important. We will make available more than $10 billion cash resources by 2030. And we are going to allocate a minimum of $3 billion in dividends between '26 and '30. And I will elaborate in a second that between '26 and '30 does not mean that 2025 is excluded from some possible return to shareholder. We will devote the remaining $7 billion to all the alternatives, possible alternatives, having a clear North Star which is value creation. So buyback, what today would be a no-brainer buyback. At this share price would be the best way to invest our cash. So the only pit is that we are not starting today afternoon because it would be a great allocation of our cash. Extraordinary dividends or industrial business opportunities. On the industrial business opportunity, I take the word of our Chairperson. We have a very disciplined approach to capital allocation. So some time ago, with the interest rates close to 0, it was relatively easy to have a very simplified way to say, to assess the capital allocation. IRR, more than 10%. Good, fantastic. So interest rates at 0, so 10% is a good number. Now interest rates are not at 0, and we have to be a little bit more sophisticated. So the way is we calculate or we allocate our money is we start from the walk, which, of course, includes the free risk rate. Then we are the risk premium, which is a mix of country risk some business risk, towers and active are not the same country risk, France, Italy, Poland are not the same and some safety margin -- so it's not the same to operate in the business where we have a lot of confidence or operating in the business where we're moving the first steps. So you have to be prudent because in 1 case, you know the story from the beginning to the end and the other, you know at the beginning, you possibly have some doubts in the end. So the capital allocation committee has been touched upon, 6 members. I'm not a member, I present the -- it's very much -- most of you are familiar with the investment committee of a private equity or an infra fund. It's the same. so we have someone who presented the project, that's me. And we have someone who judged the project and then we submitted to the Board of Directors because ultimately, the final approval is from the Board. Then -- so we love to be a boring story, but with some surprises, okay? What does it mean? Predictable revenue, predictable growth and resilient margins. Predictable revenues, we have more than EUR 110 billion of CONTRACTUALIZED revenues and growth. This is something I leave to my colleague to, in particular, to Vincent to elaborate upon, very long contracts, more than 30 years contract, which is something that makes us a little bit unique. If you look at, for example, our colleagues in other area of the planet, they have not so long contracts. We have a proven ability to drive organic growth. So sometime, we tended to forget that organic growth in countries where we operate since many years, of course, is more advanced than organic growth in countries where we are continuing to invest. If you compare Italy and France and watch -- in 1 way they are since almost 10 years and the other we are continue building. And a very diversified client base. This is something that, again, make us a little bit unique at least in Europe because only less than 50% of our revenue come from the first 3 clients, which is very good. Resilient margins, protection from inflation, again, I leave to Vincent to elaborate. It's a big topic. And so elaborate -- Vincent will elaborate on this. immune to energy volatility, you know that energy provides is a pass-through. That does not mean that it's not an area of investigation. We are making a lot of work on this. It's quite interesting and a strong operating leverage, Simone will drive you through this. Why Phase 2. I was -- I started from this. So the beginning of the story from 2015 to 2022 was we can say, in Europe at least, the tower market infancy. So the tower market starts in the U.S. in the late '90s and arrives in Europe almost 20 years after. So in this period, we were -- again, I take the -- what the Chairperson will say. The data growth was starting at that time. In 2015, it was not like today for the data usage, but it was clear that the direction would have been the direction of more data. But there was a big availability portfolio. MNOs were starting rotating their invested capital, and there was a fantastic low cost of capital and abundant capital, both on the debt and the APT capital market. So -- the growth has been mostly inorganic, more than 40 deals, more than 40 deals in only 7 years. And at a certain point the -- something changes. It's normal. Something changes. What has changed? Well, everything. Now data growth is still there. It's the only thing that is still there. Data growth is there. 5G investments are still there, but they are much less portfolio available, which, by the way, is the reason why we've been able to sell Ireland at such a price. There is a scarcity effect, the scarcity factor. If you wanted to buy a big and good portfolio of towers in Europe, there are not so many -- so when we made the proposal, it's not surprising that 2 industrial bidders, 2 strategic investors decided to tap their possibility. Higher cost of capital, higher inflation, and the last MNO consolidation and network sharing. This is another point that I know that some analysts have been elaborating on, and it's important for you to listen from us directly and again, Vincent will elaborate. So I love simplicity. So life is complicated enough. So let's try to make it simple. Okay. So our strategy is based on 4 basic pillars: one, simple, make the strategy simple. Every time someone has a doubt what to do, he or she has to go for the simple part of the story. It's so easy. It makes life much easier. Focused, there are a lot of things to do, and we have to be focused. The broader is the portfolio, the more difficulties for the management team to be focused. So we have to be focused. Why? Because being efficient and industrial excellent does not come for free. It comes with a lot of work with a lot of dedication with a lot of sweat and this is what we want to do. And very last time a bit maniac of this responsible. We are leading the industry in terms of ESG. We want to continue to lead the industry -- and in order to make this, we're making a big change. We are moving the ESG from a consequence to a target. So normally, what you do, you make your strategic plan and then you measure what are the consequences in terms of ESG. Now we are putting ESG inside strategy and ESG is a target itself. So we will have industrial targets, financial targets and ESG targets. This is the only way to change the gear. So I'm making it too long. We have to work on our core values. We are neutral. We're independent. We're industrial. We are a big portfolio of 11 countries, and this is a point of strength because most of the time, we have the possibility to have -- to balance growth in France with stability in Switzerland. We can have a high new project in 1 country and solidity from other countries. We have a good team. But the most important, we are strongly rock solid committed to achieving the investment grade by S&P by the end of 2024. We can do much better. We can do much better than the end of 2024. We are reiterating the '25 guidance. I think that the targets for '27 are not so trivial. I know that we are fine-tuning with some of you. There are elements that Juan Jo would help you to navigate it and then the big change. Now it's time to return value to shareholders. So we ask you to be patient. We asked you to support our growth. We asked you to support our investment strategy now is the time of the harvest. Now it's the time to getting the result. So money is going to be there and money is going to be mostly for the shareholder return. Having said that, Vincent, the floor is yours.

Thank you very much, Marco. Good afternoon to everyone. Pleasure to be here. So I will cover in my section, who we are. Obviously, you all of you know Cellnex, but we'll enter into more detail and where we want to go. We'll cover our growth story, our business model strengths. The opportunities in challenge ahead, we will discuss in this section about the M&A consolidation, which is 1 of your questions. And then as part of this sphere, I'll cover because strategy is linked to execution. I'll cover the first 2 pillars which are simple and responsible and Simone will cover the 2 remaining one. We are the pan-European telco leader. Over the last 8 years, we multiplied by our operational magnitudes. We're present in 12 markets with 16 anchors, with more than 110,000 sites and 150,000 PoPs. But not only we are the pan-European tower leader, we are the national champion in more than 80% of our market being #1, on #2. Once we have said that, and this is linked also to our portfolio and asset rotation, when we are not a leader, we want to become leader, which is the case of Nordics, where we have explained -- and I'll explain again. One, we want to partner because we see a market fragmented, and we see Cellnex that in the medium term can take more market share. These national champions we do it through 4 business lines. Towers is our core and Real remain our core with 80% of our revenue, EUR 3 billion being towers. This is the macro towers. But with the data growth consumption, you need to extend the network. You need to densify, you need to go to extend the coverage and this is our DAS, Small Cells and RAN-as-a-Service with circa 6%. This is a natural extension of what we do. Then our towers with 5G, these 2 additional things. This fiber, especially in the case of 5G stand-alone and needs housing services to put more equipment and the core being closer to be hedged. And this is what we do on Fiber Connectivity and Housing Services with 4%. And then we have our legacy business, Broadcast both on TV and radio, which is a business we love, which is stable. The investment cycle has been done and will remain in this business in the current perimeter. These 4 business lines, again, with 80% focus on tower are split in 12 countries. Our top 5 markets represent 80% of our revenue. This is our core. In the sense of order France, Italy, U.K., Spain and Poland. This is the first time that you will -- we will disclose, Raimon will explain our top 5 countries, and we'll have an improved operational disclosure in terms of financial. Let me highlight 3 things. First, DAS, Small Cells and RAN, DAS Small Cells, Simone will explain to you, we see growth. Yes, we tend to see you may think this is small. Let's be clear. We are the European leader on DAS and Small Cells. As you can see, there are 5 markets where we are big. But we have been, over the last 2 years, we have built some presence in DAS and Small Cells in the remaining 7. What is our objective? Very simple. You see the small things, they will be big in 2027 in DAS and Small Cells. Second, RAN-as-a-service. We truly believe in it. Having said that, this is something that we made a bet, the secure bet. We will demonstrate to you with this improved disclosure that this work and want this will work, then we'll expand in new geographies if we make the case. And for now, it is in Poland and will run in Poland. Finally, fiber connectivity. We have 3 networks, 2 are nationwide networks, big ones in France and in Poland, and then we have a regional network in Spain. Once I've explained what we do. Let's deep dive in our business model strengths. Marco explained we're secure revenue growth. We've diversified client base. We have very strong relationship with anchors. I want to spend time on that. We are a real neutral operators and will explain why. And then our business is about data growth. This is the underlying driver -- this has been done. And this will remain. I will put some fingers because this is the long-term growth of this business. EUR 110 billion, this is a unique number. Yes, it's big, but it's very big compared to our peers. Our EUR 110 billion backlog is composed of our existing contract plus our contractualized build-to-suit. This is contracted. CPI, which is contracted is not included in this EUR 110 billion. Look, we're being conservative. We don't know what will be the CPI. So we say, we don't include it. This number will massively increase because of the CPI that will come to our contract. We'll spend sometimes afterwards. 2/3 of our contract is linked to CPI, 1/3 is linked to fixed indexator. Long-term backlog visibility. Second, medium-term growth. 80% of the revenue growth you see in our guidance 2027 is already secured. So yes, we need to work very hard for the remaining 20% and this is what Simone will explain. Our proven ability to achieve organic growth, the perimeter of Cellnex multiplying by 8 change of perimeter build-to-suit made very complicated to you to follow our real organic co-location growth. Over the last 6 years, we have increased by more than 22% or co-location ratios, 22%. If you deep dive in the country where we enter first, so we had time to implement framework agreements with customers, these numbers reached 33%. So we have done it -- now Raimon will explain in the way we report also this organic and co-location growth will be more easy for you to follow, but their organic growth and has been organic growth in co-location at Cellnex. Second concept is our build-to-suit. We have EUR 4.5 billion of contracted build-to-suit commitment with customers. This EUR 4.5 billion is composed of 80% to towers, again, more than 80% for revenues towers, more than 80% of our growth in build-to-suit CapEx will be towers. The remaining 20% is fiber, and RAN-as-a-Service, mainly. This is a very healthy growth to come. Our implied EBITDA multiple of this build-to-suit is well lower than the trading multiple of Cellnex today. Second, we'll put upside on that. We'll put new co-location on that. When you have a new tower, this attracts a lot of interest from the remaining MNO in the country. And second, we'll put more efficiency in the towers. If we can buy the land, we'll do it. If we can renegotiate the line, we'll do it and Simone in his section will explain. The key message in this slide is, yes, we're diversified. But we have diversified in developed markets. We have diversified in hard currency. We did not diversify taking more risk. This is the key message. 69 in current 12 markets, 48% of our revenue comes from our top 3 customers. These top 3 customers, they are not each customer in 1 single country. These 3 customers are split in 9 countries. So these numbers will be even lower if I will look at their national position and not looking at them as a group. But compared to peers, we are diversified. And as I said, 100% of our revenue base is in developed markets and our currencies. Let's talk and spend some time about the relationship with anchors, this is where we spend more time. I came from the operation. This is what is about trust. First concept, customer contract long term to us. 31 -- more than 30 years of backlog is the biggest number of the industry. Second, once a customer sign with Cellnex, they repeat with Cellnex. They expand the relationship. What drives us, what drives our decision in the investment is our relationship with the customers. There's a clear success case here, which is France, where 3 anchors. And once they have signed they repeat. But more even important, this is the proof of what is being neutral. Do we imagine our customers, the trust in us knowing that we work with their competitors. And if they do so, it's because they trust that we're neutral, which again, it's unique to Cellnex. And once we have done that, we'll extract value also by crossing portfolio and Simone will spend time on that. And not only they commit, not only they expand, they repeat. We have last year signed and announced the industrial agreement with Telefonica which was one of the first deal that we did at Cellnex at [ Inceptions ] with a 10 plus 10 plus 10. On top of that -- for more than 4,000 PoPs with some adjacencies because there were some FTT in the agreement which is something we're making growth. And again, because this is the vision that our towers to have value needs to be connected and Simone will spend time on that. This line is about the long-term growth of your model. We need to think, coverage and capacity, coverage, Europe, like behind Asia and the U.S. Coverage or coverage obligation on 5G. As you can see, for our top 5 markets, again, more than 80% of our revenue we like behind the rest of our market. This will imply growth in the medium to long term. Second, data consumption. Marco explained the numbers is increasing. I see some report people yet, but the numbers tend to decrease in absolute terms. In nominal terms, we're talking that from 2024 to 2040, will multiply almost by 4x. You have -- some of you spent some time at the Mobile World Congress last week. There was only 1 word that our Chairperson mentioned, which was artificial intelligence. So 5G stand-alone will be launched now in most of the country, which is not the case of today. We have new type of coverage with fixed wireless access with very strong presence in Italy, for instance, all these will drive more and more consumption and require more and more infrastructure. I repeat, this is the long-term growth of the valuation of Cellnex. Let's discuss now 2 important trends. One is mobile telco consolidation. We have seen in many reports different point of views. So we want to have everybody the same pictures and secondly, inflation. What implies high or low, mid-inflation to Cellnex. Marco convention, this is one of the reasons why we shift the strategy, clearly, the industry dynamics, their margin pressure on M&A, they have 5G CapEx to do. They are, in some countries, ending their fixed rollout. In some others, they need to do all their fiber deployments, and they have low return on capital. So this implies the moves. How do they move on the network, either through consolidation, either through network sharing. We have seen the case in 3 of our top 5 [ Orange Mobile ], 3 Vodafone in U.K. and Vodafone Fastweb in Italy. This has implication to us for us, obviously. This has positive and some challenges. Positives because we're close to our we sit at the table and we negotiate. We understand what is the strategy, what is our strategy and we try to find a deal. Second, based on this consolidation, there have been new entrants. We have 1 of the best examples with what happened in Italy with Zilliant, when we had a lot of organic growth, putting our infrastructure available to them. And also because when they will combine, and I think a clear case is here in U.K., they combine to have a better network to have an improved network and to target to a way more better network that we will benefit medium to long term. But these are challenges. These challenges, this is maybe what you think there will be a turn on PoP, there will be a reduced growth. So to that, we need to understand what our protection. In these 40 deals that Marco mentioned, we have protected long-term MSA average tenure 30 years as we see. We have take-or-pay or were all-or-nothing clause. You know that. But we have also some RAN sharing protection, which is extremely important, and Simone will explain how we'll disclose our PoPs, our points of emission from now on because there will be more and more services with renting on our towers. But the MNO to do that, they need our agreement or we have already pre-agreed with them in a exchange of step-up fee in our contract, which has some positive implications. And also, when we sit at the table, you know it perfectly we're a DCF companies. So if we have to trade slight short term to medium to long term, we can do it. And this is what we will do because we are proactive in the negotiation with MNOs. All in all, we have estimated in these 3 countries at most 1% of our revenue being at risk and this taking place after 2027. Why? Because 2 things. You need first, it takes time for regulatory approvals. We have seen it, and we'll see it. Second, in order to make efficiencies in the network, it takes also a lot of time. This 1% at most do not take into account any opportunities that I just mentioned. One clear example and we hope to come back to you very soon is we are in advanced negotiation with Vodafone and ViMa2 in the context of the renewal of the current MSA, which again is a strong signal, especially in the context of Vodafone a potential merger. I discussed M&A consolidation. Now let's discuss inflation. Let me remind what is the inflation to Cellnex. 2/3, 65% of our contracts are indexed with inflation. In some cases, with caps 2.25, 4%. 1/3 is linked to fixed indexation between 1% and 2%. What happened when there are high inflation, which has been the case over the last 2 years. When there are high inflation, there is a moment where we are capped. So we are capped on the revenue base, and we need to fight to protect margin, things that we have done over the last years. now we will have tailwind inflation is coming back to the 2.5%, 3% range. This will be within our cap and will benefit from margin expansion. This is why and Simone will explain we will have 500 basis points of improvement in our EBITDA margin. The work we have done over the last 2 years, thanks to that, we'll have tailwind from now on with a reduced inflation. So Marco explained our key [indiscernible] strategy under these 4 pillars. Let me tackle the first one, which is simple. You like simplicity. Simple for us what has been from the day that Marco came and I take my position has been to review our portfolio, to review countries and to review business line. When you review, you do it on 3 bays. Is it strategic or not? Do we have scale or not? Is it potential growth or not? This is what we have been doing with 3 objectives. If there is growth, we need to maintain optionality to growth. If we are constrained on the balance sheet, we can do it with minority partners. First concept. Second concept and is management focus. Their business line, it's not because they're not good because, as Marco mentioned, time is very valuable to all of us, and so we want to enhance management focus and remove complexity. Third is to improve balance sheet and rating. I think you announced and -- we announced this morning something and we'll come back to that. We see 1 key principle. There is a clear arbitrage between private and public valuation. So we want to take the benefit also taking the benefits of the scarcity, and this is what we are starting to do. So we partner in the growing markets. As I said, and you saw it in 1 of my previous slides in the Nordics, we think that we can grow. Market is fragmented, and we'll do it with strong partners we did it a very accretive valuation, 24x EBITDA and we'll do it. Also to reduce complexity, we put these 2 countries under a single umbrella with 1 single management to reduce complexity at Cellnex also from an organizational standpoint. Second, we have announced Edzcom, which is our private networks that was signed in the Q3, in the Q4, sorry, 2023 and that we have announced that we have closed last week with EUR 32 million cash in with Edzcom. Is the business bad? No, it's not bad. But it is putting a lot of complexity for a free cash flow to Cellnex. And third, asset rotation, we have done our analysis on portfolio. We have explained Ireland, and we will now focus on Austria in the coming weeks with the team. This portfolio -- as you can see, our market is also very clear in terms of business line. Towers, it's our core. We remain our core and will be selective in opportunity to grow. DAS and Small Cells, Simone will spend some more time, we see growth. Again, I say it looks most to Cellnex, but Small cells already mean being the -- the most important player in this densification they want to grow significantly in the coming future. RAN-as-a-Service, I've already mentioned. Fiber and Connectivity, FTTP is a growing demand from our customers, we'll do it and will put and ambitious targets in terms of new fiber connected to our towers. Fiber transmission, I mentioned we have 3 countries, 2 with nationwide networks Poland and France, and the growth will come from our French operation, where we are connecting all the towers of our customers with fiber. And last but not least, broadcast that I've said will drive efficiencies and will drive efficiency in the coming future. This is the simple -- the responsible I'll spend slightly less time, not because it's not important. It's extremely important. Sustainability is part of the DNA of Cellnex for 2 reasons. Why we want to share infrastructure. Our DNA is about sharing infrastructure. Our DNA, and you will explain, is about not to overbuild, one. Second, we want to bridge the digital divide. What we are doing clearly is we are trying to expand. Everybody should have access to connectivity, but everybody should know how to access this connectivity and this is what we do with our foundation. Last but not least, this is unique to Cellnex. We are present in 12 countries. We're a diverse company with 55 nationalities, and we'll keep improving that in the coming future. And we're a leader -- we're a leader in TowerCo, but we want to be and remain a leader in the industry also, as you can see in the index. 5 key takeaways. You will think and this 80-20 guy. This is simplicity. Let me remind, 80% of our revenue comes from tower and will remain from towers. 80% of our revenue are from the top 5 countries, our core. 80% of our markets were national champions, #1 or #2, and we want this number to grow. 80% of our business is resilient, is secured, as I explained with the backlog and what we have in the medium-term guidance. And out of the 4 pillars, strategy and execution, they are linked, simplicity, which is a portfolio review, we have done and we'll keep doing and responsibility, which again is part of our DNA and is embedded in our strategy. Thanks very much. I'll pass the floor to Simone.

Good afternoon, and thanks, Vincent. Well, so far, we heard about the first 2 pillars of our strategy. So let me start to elaborate about the remaining 2. So focused and efficient. Well, we will drive focused growth, mainly, of course, in the tower segment or it's already been told, but we are at our company, and we will continue to be a tower company. But at the same time, whenever the investment could be compliant with our expectation in terms of return on investment also to invest in this small but fast-growing market. On the efficiency part, we will boost and improve the integration between our operations because we are spread to Europe. So we need a better integration mode at group level and sometimes also in intra-country level because in some countries, we have more than 1 operation still active. Well, -- we want to increase our productivity at the same time. But more important, all these efficiencies plans would not affect the quality of service we are providing to our customers. But on the opposite, our target, it is to improve the quality of service we are providing today. All these with the obvious target to boost our EBITDA margin and free cash flow. But before starting deep diving in the 2 pillars, I think that this introductory slide can help us to understand the overall scenario. The reality is that we are different in the different countries, not completely different. We are slightly different, but it cannot say that the same plan can be applied as is in each of our countries. For example, this is a possible view of our market. We saw just some minutes ago in the Vincent presentation, a different one. This shows in the left part of the graph quantitative representation of the countries, depending on the level of construction we have at the moment. So in the upper part, you can see as an example, France. France is a place we are building more at the moment. And the lower part, you can find Spain. That is the opposite. So we are not bidding at all. Why? Because there are different needs in this country. There are countries where the construction of macro tower is healthy because the coverage is still not the best. There are other countries where the construction of market would result in our building and our building is never a good strategy because it's a problem that if it is not a problem today, will be tomorrow. So -- as a matter of fact, most of the growth in the upper part of the graph we -- so from the country where we are building micro towers with our BTS program, we will come from these programs. And the lower part that will come from a focus on organic growth that we already see, we are able to apply it quite well. For the adjacencies, we are present in all the countries but mainly in 5 of them. We want to pursue these opportunities in all the countries are always subject to the -- our capital allocation rules. Efficiency is a general recipe, I should say, we will apply to every country. But also in this case, we have different interpretation, a different approach depending country by country. So just to summarize this slide, we will set a specific plan for each country tailored to the country-specific situation. So get back to the 4 pillars and starting to talk about the focused growth. What are our drivers? Well, first of all, to prioritize co-location. Co-location is very accretive because it's a low CapEx activity, but a very interesting in terms of boost on revenues. We will extract the full value of our BTS program. The BTS program are accretive as we saw before, and also extend our tower asset portfolio. So making us well producing a new greenfield where to apply our methodology to improve collocations organic growth. Then there is another interesting aspect that it's half between efficiency and sales and growth because it's a good way to do -- to be efficient is to sell well. So due to the fact that the BTS program at the end need a sale activity, there are programs that are already agreed, but we are then is transforming the construction 1 by 1 of our sites. We want to apply a smarter -- whenever and where possible as way to build sites or not to build eventually. But we will elaborate in the next slides. Last but not least, adjacencies. We will invest in this small but fast-growing market. What is the impact of these drivers on the 4 business lines we saw before just presented? Well, TowerCo's, well, our focus, of course, on our business. 80% of our tower business will still come from towers in 2027. What we see a growth that is between 5% and 6% average annually, a number of towers that is going to improve by 3% at the end of the period and average revenue per tower growing also at 3%, about 3% -- this is a new KPI that I will introduce later, but we think it's a better way to represent this type of market in the future. For what about DAS, Small Cell and RAN-as-a-service, we -- here, we see a much higher growth between 10% and 15%. And this will drive this baseline to be -- to contribute to the overall revenues in end of period at about 10%. Then we have to -- we will maintain our actual commitment in the fiber deployment in -- next loop, getting up to 33,000 kilometers of fiber in 2027. This is our commitment, but we will introduce a bigger number of Fiber to the Tower initiatives, that anyway, we represent a very limited revenue contribution because we are talking about 5% at 2027, but very strategic from our point of view. Last but not least, the broadcast business. Well, this is a stable business with different characteristics if compared to the other one. First of all, it's a business that is not growing -- is a stable one. Second, the technology behind this type of service is already very stable again. So we do not foresee to invest in new equipment for ts come from the renewal of the spectrum allocation from the Dubai conference that it was just a few months ago. So until 2030, this business will be as it is. And probably this, this allegation will be also postponed for the next decade. So safe and stable business. Let's start to the most important business line. How do we expect the growth in this area? Well, we expect to growth about -- or better said, more than 30,000 new PoPs coming both from our BTS program, but also from organic growth. The contribution we expected is more or less 50-50 -- and we think that this is average, the percentage we will maintain. At the same time, it's important to underline that our bisect program are going almost to end by the end of the period. So we have a -- we will have 90% of the sites delivered in 2027 and only 10% remaining for the following years. At the same time, we have some interesting massive rollout in particular, what I am sharing so that you can see as an example in the upper right part of the slide, that we think that will continue in the next year. That's why going to this slide, we are evolving our way of metering some KPI in particular, PoPs. Between '22 and '23, there was a big change. The RAN sharing started to grow much more than the past. Historically, we used to report the pubs with a weighted approach in the sense that the non-MNO and rent sharing will translate it to an equivalent PoP basing our weight in -- to the revenue contribution of the PoP itself. This led us to decrease the number of POPs comparing to the physical one, but with a bias that was limited. If we see in 2022, it was about 5%. The reality is that RAN sharing is expected to grow much than the past. MNO PoP, non-MNO PoPS 2. So we decided to abandon this equivalent metering and pass to the physical PoP in line of what our peers already do. So the arrow would have been too much. 12% is a big difference in 2027, if we continue to follow the growth as planned. At the same time, we introduced a new KPI that is the average revenue per tower. You can see the upper bar upper right part of the slide. And so giving another look of what -- an overview of what do we expect for the next 4 years, including this one, is to go from customer ratio considering the physical PoPs, so the new way of meter PoPs to 1.64x. At the same time, to increment our average revenue per tower by 3% in the same period. while increasing the number of towers of another 3%. So the combined effect of the average revenue per tower grow and number of tower grow will drive us to the result they posed before. It's important to underline another phenomenon that our BTS program introduced new towers in our portfolio, but these towers enter our portfolio with a lower fee compared to the average one. And typically with a lower customer ratio because they are mono-tenant. So customer ratio 1. So this type of program introduces dilution in these 2 KPIs that you can see represented graphically. Without this effect, it would be -- of course, it would have been higher than what we should in this moment. Well, let's spend 2 minutes about what is the CTS concept. Well, when a customer has a BTS program with us normally ask for the construction of a new site. So there are 3 possible scenarios. Yes, for a site where there's no alternative. So we have to build a new site. That is a normal way. So that is more than 90% of the times. But there are cases in which can happen that our 2 customers are asking the same site at the same time, saving the sense, very near sites or that a customer ask us a site very near to a 1 that we have already in our portfolio because, of course, our customers don't know our topology entirely. In this case, what we are negotiating with our customers, and we are already well advanced in -- with some of them is to reuse as much as possible our legacy infrastructure instead of building. I repeat, our building is never a good idea. So if there's already infrastructure available, there's no reason to build. This will translate in a benefit for our customers because it's saving on their side, and it's a saving on our side because we would save 30% of CapEx, more or less, but more important, all the future OpEx related and, of course, lease related to a new site. So very, very interesting approach. We estimate -- well, there are between 5% and 7% of the new sites that can be built in this way, build or we would say, managed in this way better say. Well, talk about the big chapter of the towers, let's start talking about adjacencies. What are the conditions? The conditions there should be activities that are complementary to our core business. So we are not doing strange things, something that is very near to our core. They must have group eventual. There must be a market -- fast-growing market. Otherwise, it's not interesting. Third, they should be value accretive otherwise we are not going to invest in strange adventures. We are going to follow exactly the same caveat aggregation rules already explained. Anyway, we expect this part, this business line to grow much more because we are planning to get to 50% of revenue contribution from the actual 11%. So we expect an interesting growth in the next years. Let's deep dive a little bit about DAS and Small Cell. DAS is -- what's happening is that the data traffic is increasing but it's interesting in the observation before. Artificial intelligence and geographic part, it seems that our estimation of the analysts that will add 8% more traffic, if compared with the old, with the old trends to the data consumption. So we need coverage and we need throughput. There are 2 types of densification because the only way to do this is to densify indoor and outdoor. But at the same time, the operator need this service. In outdoor, for example, they are having every time, and we are having every time, more difficult to build the macro towers, especially in center of cities, some very dense urban areas and there is availability of high-band spectrum. So all this mix, I think, will help us to double our revenues in this sector by 2027 and to get between 25,000 and 35,000 nodes in the same period. Just another an observation is changing also a little bit the market scenario. Once the only buyer of densification were the MNO, now is not anymore like that. because, for example, you see in the bottom right of the slide, the example of a stadium or the football stadium. Venue owners, especially some type of venue owners like big shopping mall and airports, stadium and so on, they need to provide to their customers an excellent service level. So it's not -- and also for the agreements, for example, I don't know if you know, but in the stadium, if you want to do a music concert, you must provide a certain level of throughout and coverage. Otherwise, the organizer will not, will not use that stadium. So there's a growing interest directly from the venue owners to invest and to buy the infrastructure. They can buy 2 models 1 that is called asset light that essentially is not the 1 that we prefer that the market is asking that is -- they buy the infrastructure and that we design, manage it. This a valid investment because investment is done directly by the venue owners, so you can choose the return you want to have. And on the other side, we have the infrastructure traditional approach. So we design, we buy, we invest, we build and we manage with long-term contracts. Today, we are European leaders and our target is to cement this leadership in the next years. Another interesting flash. I think about our Polish operation because we are in a very unique situation. We are let's say, experimenting a new model that is a TowerCo network -- TowerCo-driven network rationalization. So we are not managing only the passive infrastructure, but we are managing also the active infrastructure. So we can say in other words, everything about spectrum but core networks and but network planning. So -- and of course, nothing related to sales to final customers, but this is obvious. So it's an interesting test case because it could be a way in which the market consolidation could go in the future. We want to be ready if the case -- but at the moment, we are in the lending phase. We are not planning to replicate this type of experience at the moment nor in the next future, but it's very important to be ready eventually for midterm. At the moment, this line, this RAN-as-a-Service business weight for only 2% of our revenue general revenues. Just 1 flash about -- another flash about the fiber to the tower business, the fiber to the tower is a small initiative. If we look at the numbers because we are talking about 5,000 towers, but it's very interesting from the strategic point of view because our customers need to have -- to connect the towers to provide excellent service to the customers. But in the dense area is something that they are taking care alone because there's wide availability of fiber optic in -- where there are opportunities, interesting opportunities are in the low dense area, non-urban without fiber present, we built the funnel to identify what are convenient for us, of course, in terms of return to pursue. And -- so non-urban, not far away from our car from a fiber car -- otherwise, it would be too expensive. -- at least 2 tenants on the size. In that case, it's interesting for us, and we will -- we already identified about 5,000 possible connection to build in the next 4 years. Well, the first pillar, [ focus as ] a growth pillar. It's already ended, and we start now with the drivers of the efficiency plan that we are putting in place. What are the drivers? Well, optimize out of our operations. We are big, we are spread in Europe. We have come from a past of M&A, so adding new companies, there's room to improve. Increase our productivity, mainly through the introduction to standardization industrialization and services, but also with specific well, tools and software platforms. We want to capitalize more on our economy of scale that is more or less what we can do through the other drivers too. and we want to unlock more value from our existing legacy assets. These are the levers that we are going to use. So lease cost optimization. As you know, this is the biggest line in terms of cash out in our balance sheet. Tower rationalization, we want to use better our assets. Operation and maintenance, well, enhancement, there's room to improve here too. And last but not least, a consistent digital transformation plan. and that will drive -- help us to improve productivity. The evolution of the natural cost pay on lease cost. What's happening? Well, we have most of our sites in a sec right way, but at the same time, their CPI, and there are net adds of new lens because we are still building. So we are adding something like 5,000 -- 15,000 new lens in the next future. So initially speaking, the lease cost will grow at a pace of 19%. Our target and our plan will impact this growth by minus 8% through the acceleration of the optimization of lease cost, this is a set of initiatives. So I will not deep dive. But it's a plan that was already in place, but we are pushing more, and we think we can obtain more on this specific stream. Newer LandCo creation, we want to create a LandCo, a captive LandCo to accelerate our acquisition of real-estate assets of lands. Site securitization. We -- for us, it's really complicated to lose a site because it's 0 value accretive. It generates much work, and we have to -- and we generate a problem to our customers. So it's very important not to lose sight. So such securitization plan improved. I repeat all these initiatives together will drive us to decrease by 8% the natural cost base trend over the next 4 years. What is this Landco. This LandCo is -- come from the carve-out of our real-estate assets initially in these 4 countries. So Italy, France, Spain and Portugal. We are talking about 10,000 sites. These 10,000 sites will generate the biggest LandCo in Europe at the moment. And I repeat, it will be a captive LandCo. So the only client will be Cellnex. But -- and we, of course, we will respect all the agreements that we already have with our customer system of performance. We -- the structure will be made to maximize value for the shareholders, very efficient to generate synergies and to allow tax benefits where possible. There's also a possibility. It's a strategic option to let enter a minority stakeholder in this vehicle, but at the moment, nothing as you ruled out about it. Let's go to tower rationalization. We have a big park. We are big. We have 110,000 towers, slightly more. And the reality is that they came from acquisitions. So we have something to fix something to optimize. And both on our legacy footprint than on BTS. We already talked about the BTS part in the sales part because I already told you, we are half and half between efficiency and sales. But I repeat, on BTS to CTS, we identified addressable target between 5% and 7%. And we also estimated after quite a deep analysis, we call ABC analysis of our sites or of portfolio sites that we have between 2% and 3% of side that can be optimized. So in other words, dismissed because we have -- we are -- we have other assets many near or there are specific situations that will push us to close this site, to dismantle. Last lever. Well, last, it's not the last lever, but because we have the digital transformation, but the last 1 on operation and maintenance and on towers -- here also, we would have quite a big increase in our base cost in the next 4 years, estimated by 23% and both coming from CPI and again, net addition, net growth. What we are doing here? Well, first of all, most of the maintenance cost is outsourced maintenance activities is outsourced to our -- to other providers. We are revising all the agreements of the contracts we have in place and also all the processes we have in place, standardizing at European level. Second, we are improving our access management systems. It seems a secondary aspect, but since is the #1 service that our customers ask us, and it's very -- well, it's very hard in terms of research consumption. So it's important to optimize. Here, we are also using artificial intelligence, for example, to automate the process. Site construction. We are still building site. We are constructing side. We are reviewing completely the building process. And so the way we build a new site. This initiative will drive us to a decrease of minus of 10%, so minus 10% in the cash-out expense. So we're talking about CapEx and OpEx, both from operation and maintenance comparing to the plus 23% that would come out on an initial basis. Another interesting KPI, all this initiative will permit us to decrease by 3% of the average cost of the tower in 2027 if compared with the actual cost. So this is really my last slide. This is about the digital transformation plan. We strongly believe that an effective way to standardize, industrialize and is to use common platforms. So we developed Cellnex, the One Cellnex tech platforms. Our tech stack, if you prefer, that is a comprehensive set of applications that are identical for all the group. And we are just rolling out in these months. We estimate to end the rollout by the end of 2025, but most of the rollout will be done in 2024, especially in the biggest countries. So with this operation, we don't only expect to standardize and to optimize, but also to generate a reliable set of big data to be able to apply a continuous improvement approach because with a reliable set of data, we could continue to improve our operation, also fine-tuning more than we did in the past. We are also using -- starting to use artificial intelligence on this type of activity, especially at the moment, especially on contract management and other administrative aspects but we want to use it also on the industrial part and for example, in predictive maintenance. But to do that, we need bigger than the quantity of data reliable data. Well, so thank you. But before leaving, I want to leave you my 5 key messages. Well, we continue to focus on tower and we will deliver an annual average PoP growth of about 5%, divided half and half from BTS and organic colligation. The revenue per tower is going to grow at about 3% a and the customer ratio will arrive up to 1.64% at the end of the period. We are going to invest selectively in adjacencies and we will pass from 11% -- actually 11% to 15% of revenue contribution by 2027. And we -- our efficiency plan will produce a decrease of minus 8% in lease costs and minus 10% in operation and maintenance cost versus the initial cost base. All this will translate in an incremental -- an increase of 500 basis points in our EBITDA margin. And said in another word, we will let us pass from 59% to 64% of EBITDA margin in the period. So thank you, and I'll leave the floor to Raimon.

Good morning. Good afternoon, everyone. I'm going to be covering the next 2 sections of the presentation. The first 1 is going to be about our enhanced reporting. We are not changing the reporting. It's the same reporting. It's the same numbers. We are just going to give you a bit more of a granularity. We've been listening to you. You were asking us that you would like to compare better to our peers. And to do so, you will see that we are drilling down so that you can better understand our business and model it better. Second part of the presentation is going to be about capital structure and capital allocation and how based on that, we plan to maximize shareholder returns. So let's just start. As I said, what we're going to talk now, it's not changing any of the numbers that we have reported to you until now, just showing them a bit different or a bit more with granularity. We're going to talk about 4 topics, revenues, OpEx, adjusted EBITDA and adjusted EBITDA, and we are going to talk as well about CapEx. Let us start by revenues. Within the revenues, Vincent has been explaining to you before, that we're going to read the business a bit different. We're going to talk about 4 business lines rather than 3 business lines. So before we used to have this -- we used to have broadcast and other network services, and we are moving that into Towers, DAS, Small Cells and RAN-as-a-Service, Fiber Connectivity and Housing Services and then Broadcasting. Tower represents more than 80% of the total sales as of now. Also, we're going to break down 5 big countries rather than 3 as we used to have before. So we are going to have Italy, France, Spain, the U.K. and Poland, and you will still receive as always, the rest of Europe in terms of information. Again, those 5 countries, they represent 80%, a bit more than 80% of the total sales of the group. There's another change that we're going to do because our peers reported that way. That is excluding from the revenues, everything that is considered pass-through. So we have some of our costs, basically utilities. And in the U.K., we have the business rates that we pass through directly to our customers without any type of margin. So what we're going to do is put that together into the P&L and report a net pass-through and then that will reduce a little bit the revenues because of that concept. That's on the revenue side. If we look at OpEx, the only change that we're going to do in OpEx is basically take out the utilities. We are going to take out as well the business rates, and we will move that into the pass-through. And we will just create 1 line below the payment of leases. Today, you have adjusted EBITDA, lease payments, we're going to add adjusted EBITDA, EBITDA after leases so that you have all the information in the report. In terms of adjusted EBITDA and adjusted EBITDA, the only change is that we're going to give it to you for the 5 big countries, not the 3. And then on the CapEx, I'm going to go in detail later on, but the idea and what I have been getting from yourselves and also our IR team is that it's difficult to understand how our expansion CapEx translating to growth of revenues. So what we're going to try to do is break down this expansion CapEx so that you understand how we look at it, how to allocate it to towers, how to allocate it to other services or to efficiencies. So let's go 1 by 1 in detail. So the year '23, we have closed with EUR 4 billion of revenues. This EUR 4 billion is a 15% increase versus the year before if we take out the pass-through. So you can see that from the EUR 4 billion, we go down to EUR 3.6 billion, EUR 3.7 billion. That difference is the revenues linked to the pass-through. And you can see that then we break down this information by the 4 segments that Vincent has explained to you before. So 83% is Towers. We have 6% being that Small Cells and as RAN-as-a-Service. We have 4%, there is the fiber and Connectivity and 7% there is the Broadcast. The same with the countries, the 5 top countries they do represent this 81% of our total revenues. One thing that is important and that, again, we know that our peers are doing it, because we want to get the best information to you as possible. We're going to break down our growth in different type of items of growth. So first, we're going to talk about CPI and escalators. When we talk about our revenues part of that is contracted, and that's CPI and the escalators. We will then give you part of the growth linked to co-location. That's co-location of Towers. But at the same time, is the organic growth of the other 3 segments that we have. We will give you the build-to-suit growth. You've seen before from Vincent that 80% of the build-to-suit is also Towers. So you will be able to understand that as well. And finally, the change of perimeter. As I said at the beginning, 15% growth in the year '23, 9% of this 15% is linked to organic growth between CPI escalators, co-location and build-to-suit. So it's very important that the business is growing basically because of organic growth. On the cost side, as I said, minor changes. If you look at the different lines, the only thing we are doing, we take the utilities, we put it below as pass-through cost. From the general and admin expenses, we take out the business rates from the U.K., EUR 33 million. We put it down in the pass-through cost, and we bring down as well the pass-through revenue so that we just create that group and you will have the net pass through, in this case, minus EUR 4 million. We are adding as well the line of adjusted EBITDA, EBITDA after leases, and those are the only changes in terms of OpEx. And then if we move into the CapEx. Within the CapEx, what we have is within the expansion, 2 types of investments. We have investments that generate growth of revenues that because of the growth in revenues generates growth in EBITDA and because of the growth in EBITDA, we generate growth in recurring level free cash flow. We have another type that does not generate growth in revenues. It generates savings, efficiencies in leases, efficiencies in energy and other efficiencies. So this 1 reduces our cost, improves our EBITDA and improves our recurring leveraged free cash flow. So the first of the 2, we split it into, you have Tower expansion CapEx, other business expansion CapEx. So the tower expansion CapEx is the 1 that will explain you the growth on the new category called Towers. And basically, it relates to either new co-locations that we do with customers, increase of customer ratio or still investments linked to our existing contracts to grow co-location with existing customers. The second one, other expansion CapEx business lines, it's linked to the other 3. You have fiber connectivity, DAS, Small Cells, RAN-as-a-Service and broadcasting. This last 1 is very minor, so almost nothing. And then we have the efficiency CapEx. Efficiency CapEx, as I said, it's more focused on savings. So here, what we have is investments that we do to reduce the total lease payments, investments that we do in digitalization as well. So thanks to digitalization, we are already able to save certain costs. And then we have as well other investments for energy savings and other type of savings. Again, what you can see is that the number is exactly the same as we were reporting before. No changes in numbers. So up to this point, we'll close the section 1. Just to highlight again, we are not changing anything in the reporting, just granting further information, further details so that you can understand better the way we are reading our business and the way we model our business. In the coming days or weeks, you can contact with Juan Gaitan and the IR department in order to get more information on how things have moved from 1 line to another and you can understand better the flows. So now we enter into capital structure and allocation. Up to this point, you've listened Vincent talking about the strategy. You have listened as well Simone talking about the execution of the strategy. And what we're going to see is how those 2 things together help us grow the EBITDA of the company, helps us accelerate the cash generation of the company. And based on that, how we are deleveraging, setting a new target leverage -- and based on the target leverage, what is the capital allocation that we are going to be able to do to maximize shareholder returns. So as I said, and I'm going to repeat this probably many times, our first priority is to maximize shareholder returns in this new chapter. We have defined new financing policies. These new financing policies are going to be sustained within 3 pillars. The first 1 is to be investment grade by 2024 with the 2 agencies and basically now with Standard & Poor's. Once we achieve that, we have a medium target in terms of leverage that we're going to define and Marco has explained before, it's 5x to 6x that we plan to achieve by 2025, 2026, no later than '26. And once the new long-term leverage is defined we will explain you what cash generation we're going to be having and how we are going to be allocating this capital. There is a new capital allocation committee in the company. Marco has explained in detail before. Based on that, we have defined a minimum dividend, we have defined share buybacks, policy and also an industrial growth opportunities approach for the upcoming years. So let's go one by one. As we said, our first priority is to become investment grade with the Standard & Poor's in the year '24, not only that, but to continuing investment grade after with the 2 agencies. To become investment grade, we need to delever the business, and we are on track in order to delever the business as we were planning. In the year '23, we have achieved for the first time in the last 6 years positive free cash flow, EUR 150 million free cash flow. Also, we are on track on our asset rotation program. As you know, last year, we divested a minority stake in the Nordics. We also received part of the remedies from France. And this year, we have received already EUR 150 million and expect to receive another EUR 200 million for France, a bit more than EUR 200 million. We closed as well the transaction of Edzcom, and we have signed the divestment of our Irish operations. By becoming investment grade, we're going to get access and consistent access to the debt capital markets, and we will be able to achieve lower credit spread credits. Why do we need that? Because as you will see in a second, we still have some refinancing to be done, and we need to be able to access those markets in order to refinance at the lowest cost possible. So year '23, we have managed positive cash flow. This is going to accelerate in the upcoming years. And such acceleration is going to be boosted basically, but the improvement in EBITDA growth, but also because we are finalizing the contracted build-to-suit. As you know, we have EUR 4.5 billion of contracted build-to-suit. Most of it is going to happen and it's going to be invested in the years '24 to '26. You can see that there is a decline on such investments. And by the year '27 is going to be already significantly low, getting to 0 by the year 2030. If you look at the cash flow, the free cash flow, it will be increasing over the coming years, achieving $1.3 billion free cash flow by the year '27, this is 8x the free cash flow that we have had in the year '23. This improvement of free cash flow, as I said, is both EBITDA generation, but at the same time, lower investment in build-to-suit. When we look at how the business can deleverage, if you look at the year '22 to '23, we have deleverage 0.8x our debt. This deleveraging has been both organically because of the free cash flow but as well because of our asset rotation program. Basically, the Nordics transaction and the remedies from France. In the year '23 to '24, we are going to still accelerate our deleveraging to become investment grade. And we are going to do it again based on free cash flow positive, but at the same time, continuing with the asset rotation program that we had in place. We have just closed the sale of Ireland, and we are still analyzing other divestments. Once this is finished, the group is able to still deleverage 0.5x turn of EBITDA on an annual basis, considering that we are paying the minimum dividend of $500 million. So when you look at our deleveraging capacity, if you look at us as investment grade, it makes us feel extremely comfortable regarding our debt maturities of the upcoming years. We have a debt profile that is well designed, both in terms of maturities, but also in terms of cost. The debt maturities of 2024 have already been paid. They were paid with the proceeds of the Nordics divestment and we are looking at -- during this year, repaying the 2025 maturities as well as far as the asset rotation program keeps on going in place. Even after paying the 2024 maturities we have finished -- or after that, we still have EUR 3 billion of cash available, what makes us extremely comfortable from a liquidity ratio perspective. Our average life of that is above 5 years at this moment in time. When we look at the cost of our debt, today, we are at 2.3% in terms of cost. What we are expecting and because the proven approach the company has had that 76% of this debt is on a fixed rate basis is that until the year '27, our cost of debt considering the dividends, considering the refinancing that we will need to undertake will not be above 2.6%. So now that we have clear how we can delever the business, now that we have clear what's our debt profile, that is an attractive debt profile with good maturities. We can then enter in to see what's the optimum capital structure that we believe the business should be having. So we have defined 5 to 6x levered for the company in terms of leverage ratio to be achieved by 2025, 2026. How do we get to this number? First, as Vincent was explaining at the beginning, we have EUR 110 billion of revenues that are already contracted. This means that we have revenues contracted EBITDA contracted and free cash flow that is already contracted. This gives us a lot of visibility to make sure what are the payments that we can do in the coming years and what are the debts that we can have and what the maximum debt that we would be having for that period. Second, our rating agencies state us as an excellent business profile. Why? First, because long-term contracts with all-or-nothing can renewal clauses because we are resilient in terms of inflation. We are resilient in terms of energy that we are able to pass through because we are present in more than 12 now 11 countries in Europe. We have a good diversification of customers as well. Good debt profile on many more things that you all know extremely well. So based on those 2 factors, we define this 5x to 6x that at the same time, it's giving us the flexibility to move 5x to 6x, depending on market conditions. So if we see that market conditions are getting tougher, we can go down to 5x. And if we see that they are weakening a bit and it's easier we can go up to 6 to look for some further opportunities. So with that, there is 1 thing that is important. We're going to be generating organic growth. We're going to be generating more EBITDA, more free cash flow. But as well, we are setting up a leverage target that is 5x to 6x than with our capacity to deliver, it will allow us to generate much more cash by keeping this range 5X to 6x. So as you can see in the graph, it's the same graph as we have seen before, before it was only showing the free cash flow. But now what we have here as well is what is the gap in green of the cash that we can generate by leveraging the business between this 5x and 6x. Having this available cash give us flexibility for the capital allocation framework that we have explained before or Marco has explained before. So we are going to be talking about a minimum dividend that will be growing since the year '26. We are going to talk about the share buybacks and extraordinary dividends in order to enhance shareholder remuneration. And we are going to be talking as well now about industrial growth opportunities. So if we go first with the dividends, as we said, we have defined a new dividend approach that will mean EUR 500 million to be paid from the year '26 -- being the year '26 the first year, that it gets paid with a 7.5% growing. We, as a company, are working and are working hard in order to achieve our target leverage as soon as possible. And if that was the case, we will try to see if we can accelerate shareholder remuneration before that moment in time. But our commitment is for 2026. Last and extremely important, EUR 10 billion, EUR 10 billion is the cash that we are going to generate from today till the end of 2030. Out of this EUR 10 billion, we're going to dedicate EUR 3 billion to our minimum dividend. EUR 500 million starting in '26, growing 7.5% per annum. And still, we are going to have EUR 7 billion that we need to allocate on the upcoming years. We're going to be looking at share buybacks. Clearly, as we were saying at today's prices, it would be the best opportunity that we would have. But at the moment that we will do it, we'll see if it's accretive or not for our shareholders. Why do we look at share buybacks? It's tax efficient for our shareholders. It improves all our metrics. But at the same time, today, the AGM has already delegated into our Board the capacity to buy up to 10% of our share capital. We are going to be looking at well at industrial growth opportunities. As Marco explained, we have a new capital allocation committee that will take a disciplined approach, and we will look at opportunities that bring an equity IRR -- minimum equity IRR with specific business risk profile and country risk profile. If share buybacks are not an option, if we don't find extremely good industrial opportunities, we will be remunerating our shareholders the extraordinary dividends. So just to close 5 takeaways. First, we are improving our financial reporting. As we said, we are not changing it. We are just giving more information so you can understand better like we do, the way we read the business and you can model better the business and compare us better to the different peers. Second, we have a commitment to reach investment grade in the year 2024 with the Standard & Poor's and to continue being investment grade with both agencies going forward. Third, we have set a targeted leverage 5 to 6x. That will give us the flexibility that will give us, sorry, the flexibility to move it in this range depending on market conditions. Fourth, we are setting up a minimum dividend, EUR 500 million payable from 2026. If possible, we will accelerate shareholder remuneration but we are committing to '26, and we'll be growing 7.5% per annum. And last, on top of this EUR 3 billion that we are going to dedicate to dividends, we will have EUR 7 billion that we need to allocate in terms of cash. And that through a capital allocation committee, we will define how to allocate between share buybacks, extraordinary dividends or industrial growth opportunities. Thank you so much for your time. And I pass the floor to Juan Jose that will tell us about the guidelines.

Thank you, so much time Raimon. And now the section you were waiting for, guidance. This is our 20 -- our short-term financial outlook. So essentially, what we are doing here is trying to provide the figures that we reported last week, our 2023 financials. So in our view, in line with the expectations. So we are meeting our financial outlook. And maybe just to highlight that we are generating positive free cash flow 1 year of EUR 150 million, 1 year ahead of our expectations when we define this metric. So very pleased with our performance. Now we are also providing 2024 guidance. In our view, this is simply a bridge between '23 and '25, which is the guidance that you already know, which we are reiterating, -- maybe the only thing that we are doing is to narrow the ranges as we get closer to that year. And despite the headwinds, we know that we are living now in a higher interest rate environment. Also, we need to manage higher interest expenses. But despite that, thanks to the -- all the different measures that Simone has been explaining, we're in a position to still -- to reiterate our 2025 recurring leveraged free cash flow guidance. In terms of free cash flow, the short term continues to be intense in terms of additional CapEx. So this narrow range what is essentially reflecting is EUR 1.1 billion of additional CapEx. So this is our commitment for 2025. And then -- if we move to the medium-term financial outlook, we are providing here the comparison between '23, which again are the figures that we reported last week compared to '27. Just 1 clarification in these figures include our current perimeter. So all of the years that we are providing, '23, '24, '25, '27. This is based on the perimeter that we have today. We believe that this is for comparability purposes. This should be comparable with your own estimates and also to be honest because until recently, we didn't know if we were going to be in a position to announce the [indiscernible]. So the moment that the transaction is closed, we will adjust this fringes accordingly. So moving to revenues. This is essentially reflecting all of the business drivers that we have been explaining during the presentation. So our business revenues, these are going to increase 5%, 6% CAGR until '27. So essentially, that is what is reflecting its average revenue per Tower growing at around 3% and also our number of sites also growing at 3% bank Connectivity Services, that is set to increase until '27, 10%, 15%. So that is going to be reflected mostly the contribution from our fiber project in France with Bouygues Telecom, but also the new projects that we believe we are in a position to deploy with our expansion in CapEx. Also, the active services have similar growth, so around 10%, 15%. That is going to be, again, reflected the contribution from Poland because you know that we are already providing that service in Poland, but also we will be investing in DAS and Small Cells businesses. And Broadcasting is going to be stable. So taking everything into consideration, we are expecting our revenues to increase around 6% CAGR until 2027. In terms of OpEx and lease management, I won't repeat what we have already stated. So thanks to a very efficient management of our OpEx and our leases, we will be in a position to provide this adjusted EBITDA and EBITDA after leases of 7% and 8% growth, respectively. And then our recurrent free cash flow, we are expecting that to increase 9%. Also, I think that here, where there's more clarification you should be considering that in 2017, we are expecting our cash taxes over revenues to slightly increase over time. Historically, we are extremely happy with the way we have been managing this cash item. So historically, it has been performing at around 3%. we are starting to see a slight increase. So we are contemplating 4% of our revenues until 2027. Financial expenses, clearly, the new macro environment needs to be reflected into this line. Also bear in mind that we are starting to pay dividends from 2026 onwards. So that additional financial effort needs to be considered in our balance sheet. So also our financial expenses considered that dividend payment. And also, although our regulatory free cash flow definition already includes payment of dividends minorities, essentially in the past that has been 0. As we start paying dividends, also that needs to be reflected also in this cash out. So what we are expecting in terms of dividends to minorities in '27 is around EUR 50 million, and that is also included in this guidance. In terms of the cash flow, you can see that the range that we are providing, the mid-point of that range contemplates an 8x increase compared to the figure that we reported at last year. You can see here that in 2017, our build-to-suit CapEx needs dramatically decreased. Actually, the figure that we are expecting here that we are including our assumption around EUR 400 million of [ BTS ] CapEx. So that means that as our [ BTS ] CapEx decreases, our fee cash flow generation dramatically increases Okay. And with this, Marco, if you want to provide your closing remarks.

Yes. Thank you. Well, I'm very happy you survived. So I thought I could see people sleeping or totally desperate. So at least you understand that my life is difficult with these guys. So but our industry is not fashion business, it's towers. So it's not the most funny in the planet. And next slide, I have to try to do something different in the next slide. Anyway, well, guys, we have a team. So I tried to leave the team as much space as possible because many of you have more opportunity to interact directly with me. You know me, but you have less opportunity to interact with a team, and this is not a one-man show. Good changes are never a one man show, are a team show. So we have a great team. We have different characteristics. We have the engineer. We have now the guy who is a bit more animated, we have different nationalities, a bunch of Italians, some French, nobody's perfect, don't worry. And we have also 1 Hungarian. So we're increasing our diversity at least in terms of nationalities. Yes, we are still a bit underrepresented in terms of gender diversity. This is something we should work on. This time it's not really the easiest place to get an imported equal gender representation, but with equal gender, we're working on it, and we have it as one of the other possible targets. So we have a strong governance. The chairperson told us -- and let's be honest, we pass through a moment that has not been simple. And last year, the change in the governance team has been a bit more complicated than what we could have been but it's behind us. So the Board of Director is solid. It's all with the team. We have an incredible set of competencies in our Board, and it's really a [indiscernible] as our French guys, nice to say. Growth and operational excellence. And we told you infinite times, we are not an M&A factory. We are not an M&A firm. We are an industrial player. And so growth cannot come always because you buy something, growth comes because you do something. And the same is for efficiency. The efficiency comes from a lot of tiny adjustments that you do to the machine. The 80/20 men, the Vincent told us, I love this 80/20 because -- it makes it very clear what are the priorities? 80% from the towers come on. Let's focus there. So focused. And this focus wants to bring us to a solid 6% CAGR, where is the 6% coming from -- let's make a big rough number, 2% CPI, 2% co-location and 2% BTS come on. It's not exactly like this, but it's not that wrong. So what happens if the 2% BTS phase out? 2% CPI, 2% organic growth. This is what we -- this is what is our ambition long term. Why? Because we want to continue to deliver on the on the drivers of our industry, more data usage, more density, more different networks, more activities, efficient. We need to be more efficient. Some of our peers are more efficient than us. That's simple. So that's -- it is what it is. So we have to improve, but improving comes from all of the engineering work -- and so Simone, the engineer would drive us in this direction. I'm responsible, I said many times, responsibility is not just greenwashing. We would never do greenwashing. You can believe in us. Once the investment grade is achieved, and we think we can do it, the long-term capital structure should be between 5% and 6% net debt-to-EBITDA. And these will allow us to have more resources to allocate to the shareholder remuneration and the improvement of the TSR. So this brings us to something that is unusual for Cellnex, which is not spending money, but returning money. So time to time, it happens that it changes. We will have EUR 10 billion coming from 2026 to -- before 2030. And we say, okay, let's set a minimum dividend targets. The minimum dividend targets start from 2026 and increased 7.5% a year which does not mean that it's ruled out something in 2025. We just need -- if we do everything that we have in the plan and you are better than me in making numbers, you will see that there are resources also coming before, but maybe that the best use of these resources is not necessarily a dividend, maybe that it's something different than a dividend. Maybe because it's a share buyback, maybe it's something different. But in any case, we committed to EUR 500 million minimum dividend from 2026 onwards and EUR 7 billion are going to be allocated between buybacks, extraordinary dividends or industrial investment if enhancing the value for shareholder. Our governance strongly guarantees a disciplined capital allocation. And 2027 guidance. Recurring leveraged free cash flow, EUR 650 million above 2023. And this is what spare us from the presentation to the Q&A. So I leave the moderator is going to be Juan Jo. You are the bus now, and we will try to answer to all the curiosities coming from the floor. Thank you very much.

Thank you so much, Marco. [Operator Instructions].

It's [indiscernible] from JPMorgan. I've got 2 questions, please. Can I start with the EUR 7 billion of firepower that you have available. I think you were quite clear that shareholders returns is the priority. But I guess I'm trying to understand how you think about growth increased opportunities. So if we think about the things you're looking at, EUR 7 billion is quite a large number. Should we assume that the pipeline of what you're looking at is substantially smaller than that $7 billion? So how do we try and think about that? And if I think about the opportunities you have -- are we talking traditional towers? Or is it more the adjacencies that you spent a bit of time on? So that's the first question. And maybe I'll let you answer that 1 than ask the second one.

Well, we're not even close to EUR 7 billion. Simply in this moment, in our pipe for acquisition, there is no acquisition in this moment. I think it's -- I was very clear. We are not looking to geographic expansion on the country we're simplified. We're in industrial operators. So Vincent made clear that where we operate, if there is where we are not #1 and #2 because in this case, antitrust can put some limits. If we are not #1, #2 there are opportunity to consolidate in these markets, there could be something interesting. And I tended to rule out big numbers in the agencies. I don't see us becoming a must fiber company or becoming -- and when you look at active networks that we're talking about. So we are the biggest -- we are the largest in Europe, and you see that -- but no, we are not...

And then 2 quick clarifications on the guidance you've given. When we look at debt free cash for 2027, there's EUR 1 billion gap between the recurring leveraged cash flow and the all-in cash flow. And I think Raimon mentioned that the BTS is probably EUR 450 million, so I guess I just wanted to understand, does that drop off from '27 onwards? And then I guess, if that's EUR 450 million there, there's EUR 550 million of expansion CapEx, which is bigger than the run rate today. So can you sort of talk us through, it sounds like you're spending more in the [indiscernible] going forward.

You want to take it?

Yes, I can take it. Basically, you can -- we are assuming a bit more than EUR 500 million expansion CapEx falling. So that is essentially towers, other expense on CapEx, also efficiency CapEx and then around EUR 400 million of [ BTS ] CapEx. We believe that as we continue finding opportunities to continue expanding our business organically but also to do cash advances. So we believe that level of pass on CapEx is going to sustain, what is going to decrease is the CapEx. So it's only EUR 400 million in '27. It's a couple of hundred million in '28. In '28, you know that by 2030, [ BTS ] CapEx is going to be completed.

And the last part, just you did 9% to 10% organic growth in '23 on top line, which is pretty impressive. When we look at your guidance, is that then just prudent? Or was there some exceptional realities to what you delivered in '23.

Well, Well, we had a very good 2023. I think that replicating such an incredible 2023, it's what we work every day for -- but I think that having a 9% organic every year, I wish we were there. We had some tailwinds as Vincent said, this year. on the organic and the build-to-suit was very big. So don't forget that '23 -- and '22 and '23 were the peak of the build-to-suit program and the built-to-suit brings to very good effect. CPI was a little bit higher than what we should expect. We should expect a decline in CPI. So you have a higher build-to-suit and a higher CPI. So the colo we -- our base case is on the colo, we can do the same, but build-to-suit will tend to decrease and CPI will tend to decrease.

Yes. Fabio Pavan. Just to put the plan into the right context, what are your expectations for the industry? How do you expect telecom market will evolve in terms of consolidation. You talked about the risk, but what are your expectations also on the Tower side, do we get some further consolidation in the European space.

Well, thank you, Fabio. I think that let's start from the MNO side. From the MNO side, I see 2 different type of consolidation that both are going to be supported by possibly a new way of looking from EU. One is the consolidation of the MNOs. You saw in Spain. My guess is that U.K. would follow and more to come. This -- this is 1 possibility. The second possibility is more network consolidation. It's not necessarily true that you have [ rates ], but for sure, you will have less networks. Let's use the U.K. examples. In case -- 3 U.K. mergers with Vodafone, you will have basically 3 MNO plus 2 -- at least 2 large MVNO of 2 networks. So the one will be everything -- Everywhere BT network and the other one will be the big one made by 3 Vodafone ViMa2. So this is something that we will see more in Europe, it's more efficient. I don't think we will go -- there has been a debate in this sense in the U.S., that the single network, single 5G network, I don't think that a single network can be feasible because it's too risky. So it's like putting all the eggs in the basket. So a prudent state will never allow it. But 2 networks is efficient. On the Tower sector, short term, what I see is optimization in market optimization. So let's make 2 different examples. So I give you the 2 extreme: Italy, 2 tower companies, Spain for tower companies. So you easily understand that 4 tower companies, you can manage 10,000 sites or 15,000 sites, and that's going to be the same number of people with the same process, with the same systems with the same sort -- it would be much more efficient, and ultimately, this efficiency turns into better rates for the MNOs and blah, blah, blah. So big consolidations, the market is not there today. rates are too high. The market sentiment is not for big transformational deals, et cetera. Then if you look sometime in the future, having in Euro 6 or 7 large tower operators seems to be un-efficient again. So you have -- let's start from the big ones. You have Cellnex, and then independent Cellnex American tower and you have a PTI, Phoenix Towers than your Total, then you have you have [ Vantage ], then you have TOTEM, then you GD towers, then you have TAWAL then -- so you understand. So the longer the list, the worst is in terms of scale, efficiency. So I go always to the engineer that tells you that it's not efficient.

Ottavio from Societe Generale. So first question is for Marco. You gave us a lot of stats about how low concentrate is your customer base that mitigate the risk. But you didn't show it [indiscernible] starts in terms of the credit quality of your plans. So if you can tell us, you mitigate the risk on the fact that Cellnex has not the strongest balance sheet in the industry. The second 1 is for Simone. You talked a lot about efficiency and a significant portion of this efficiency is the fact that he will be rationalized to BTS and to also rationalize your overlapping towers. Of course, that also assume that your clients will be relatively happy. It's a question we asked a number of times to your previous management and they said that there are some issues whenever there's M&a versus [indiscernible] because if there is an M&A and the contracts linked the tower, then the clients, if they want to do more -- so therefore, we have to provide some incentive. So how much of the savings you baked in your guidance today are in full? Or are you already take into account some of the settings that have to be shared with your clients? And the third 1 is for Raimon. You -- I've seen that in the renewal, you were showing that you have a plus renewals with -- contract basically expire. I see 3 out of 4, the renewal comps were significant CapEx attached mostly on fiber. So it looks like the like, the effectively, they don't just give a renewal for free, adjusted on additional CapEx. So how much of this additional CapEx you expect potentially in the U.K., especially in your guidance.

I can take the first one. So your first 1 is on is working -- yes. It's on backlog. So you're right, what is important is just the credit quality our first customers, my memory is good, Hutchinson Group is A-. So as highest credit quality for our customers. It's number one. Just to give you an order of magnitude, more than 50% -- 55% of our backlog is from investment-grade customers. So again, credit risk is very important. We monitor it with the finance team, but also the diversification of foreign co-tenants with 16 is extremely important.

Okay. I can answer the second question about the winning of our customers to cooperate in these programs. Well, I think that the secret is to share part of the value with our customers. It's true, that is more true on the BTS, the BTS is here, let me say, the legacy to legacy consolidation is a little bit more complicated because you generate something to our customers that is not expected. It's not so useful for them. It's more useful for us -- but yes, we consider it already the incentives to be given to our customers. And I should say that the first -- we already have a couple of agreements in this sense, and the reaction from the other customers was not at all, well, a stop. So we are seeing certain availability to follow us. On purpose, I spoke about addressable market because I don't know, probably we will not be 10% -- excuse me, 100% but there's willing to do. And there's willing to do and there's -- I think there is a willing of rationalization, generally speaking. So the customers are not an exception.

Maybe, if I may, Ottavio, on your -- just to make sure we understand your third question. You were asking about MSA renewals of contracts with our clients. If you're -- if we are expecting CapEx associated with our renewals operates.

Basically the renewal, you show in I think, Slide 23, if I remember, where the 4 contracts were renewed over the past few years. And I've seen that 3 out of 4 at FTTN or fiber element attached, including Telefonica in Spain. So the question is, it looks that renewal doesn't come free. In fact, the client is asking for additional CapEx. I remember well, it's 23.

No, it's not.

So effectively, the question is how much of this CapEx is basically baked in on your guidance that you have to...

No, sorry, it's not -- it's the other way around. So the renewal comes as a renewal. When you sit with the client every time you sit with the client, there are opportunities that are basically new opportunities. And those new opportunities are already included in our CapEx that we are forecasting for the -- in the plan. So the renewal per se does not come with CapEx. And by the way, sorry, allow me not to mention the client, but 1 client asked us a new very large BTS program, and we just said no, because we didn't see the space of such a large BTS program in a specific market where we consider you remember the picture that Simone showed. So in that specific market, there was not the space for such a big BTS program, then we said no. But we've been working and we are still working on renewing part of the content with them. So no, it's -- there is not an automatic liaison between renewing and having more CapEx.

Andrew Lee from Goldman Sachs. I just wanted to follow up on Ottavio organic growth question. And then also talk about your asset sales just in line in line with the Ireland sale. On the organic growth side, just trying to balance what seems slightly contradictory in terms of your statements about the upcoming densification and the need for 5G rollout to accelerate in Europe. And then your assumption that your ex build-to-suit co-tenancy goes from 1.54 to 1.7% over 4 years. It seems relatively low. So the question really is like when do you think densification really kicks in terms of operators really driving that densification to deliver 5G within that time period? And how should we think about that kind of underlying growth driver? And then the second question was just on your asset sales that you potentially sell Ireland and Austria and we see people [indiscernible] your assets, it looks like a seller's market. but wanted to just get a bit more insight from you guys on the level of demand you're seeing. So how do you actually control this? Because it looks like there's a huge amount of pent-up private demand. Are you seeing more broad-based interest for your assets than just those assets you're hinting at selling in terms of Ireland and Austria.

Okay. Well, I would say that moving to 1.7% having a sort of 15,000 towers to build from now to 2027. It's not -- it's quite a big number. Then if you look to our figures, by country, you will see a lot of very interesting and some of the answers come from deaveraging the number I mean, Italy and Spain, the oldest operation we have, we are well above 2 in terms of customer ratio. Portugal is going in the same direction around 2. England, we will see because it will depend very much which kind of combination will be allowed and in case the combination will be allowed. So how should we imagine that those 2 networks that will exist. First, when 3 and rollout will really be merged and how long there is, it's a -- but there are some countries like, for example, the Netherlands, like, for example, Switzerland, like, for example, Poland, where there is -- there are specific local reasons for not having a 2.0 Switzerland. Electromagnetic limits are at 4-volt meter, 4 in England, it's sort of 60, I think. So you understand, so you simply I cannot co-locate that much. And this is why, for example, in Switzerland, we are pushing a lot the RAN sharing, which is counterintuitive, but -- if you can do nothing, a RAN sharing is better than nothing. So let's try. And this is why the idea we had of the average revenue per tower. You are in the in the telco business since quite some time. So you will remember when the MNOs were giving you the ARPU divided by voice ARPU and data ARPU. And then they said, that's the ARPU. Now I think that progressively having the average revenue per tower split between anchor tenant, second tenant, co-tenant, RAN sharing, but it becomes less interesting. It's what is -- how much money I'm getting from this asset? That's it. On your second question, there is value in being a large multinational operator. Of course, today, with our share price, where is it where it is? It seems that there is a strong incentive in getting the value from the private valuation versus the public valuation. Yes. But if you look at the portfolio, if you make a portfolio analysis, a portfolio analysis tells you that some countries give you stabilization, give you stability, give you secure cash flow, give you low risk as the colleague was mentioning before, et cetera. So the point is we have a plan, and the plan is -- includes the fact that periodically, we make a strategic review of the portfolio. You don't change your strategy every 6 months because the strategy is your direction of navigation. So you cannot you cannot make a [indiscernible], you cannot turn every 3 minutes. But what I can tell you is that periodically, we'll review our portfolio. And we will allocate the resources in the best way to create long-term value for the shareholders. If the longer-term value comes from keeping an asset, we keep an asset. If the long-term value comes from non keeping an asset, we just demonstrated, we are not shy. Well, believe me, we are not shy.

Okay. Fernando Cordero from Santander. Two questions, if I may. The first 1 is regarding the leverage part that you have the picture in the presentation, this 0.4 to 0.5x trend, just to confirm that it includes the already committed or the already guided dividends from 2026 onwards in to understand this average deleverage. Second point is in the organic growth CapEx. Up to now, you have been guiding with this 10% of our sales. This EUR 500 million in the [indiscernible] have commented for 2027. Just to understand which are your expectations regarding how this organic growth CapEx flows into organic growth in revenues. So at which extent you should be maintaining this level of organic growth, depending on the expected growth in sales that you would be forecasting. And finally, there has been 1 note in your presentation, which is the LandCo I just would like to understand at which extent you are managing the relationship between the Landco and the service we can understand service or what would be the relationship between both, particularly and how the leases would be flowing from the to Cellnex.

So the first you already answered, okay? That's the shortest answer. So the second, the idea of splitting or giving you more visibility is that because first of all, we wanted to kill some wrong ideas, for example, co-location comes without CapEx. Okay. That's wrong. Can I explain you why. New antenna, and I was at the Mobile World Congress, and I spoke with the guys who make the antenna. I said every antenna is as heavy as me. So you have to take 80 kilos and you bring 80 kilos by 3 sector. So it's more than 200 kilos and you put at 30 meters. And if you have 2 tenants, you have half a tonne at 30 meters, which means that several times, you have to strengthen the infrastructure because otherwise, the first wind day, you get your tower 2 miles from the original place. By the way, there has been a tornado in -- it's also the tornado in Northern Italy, and we lost 2 towers because of this, because of the weight both they collapsed thanks God nobody in the area. So -- but you can easily imagine, you have a portfolio strengthening a tower post 25,000 let's say, 20,000 to 30,000. So once you strengthen -- once, it's hard to believe that you go back, et cetera. So that's an envelope that tends to decrease. But it was interesting to give you also the idea of how much are the CapEx not related to towers. So you have 1 basket that are carpets related to towers. And you know that these can progressively go to reduce because I already updated a larger part of my portfolio. The other, you can easily make some analysis, and you will see that the payback of this CapEx is quite good. If you would when you put -- when you say 5 minutes with the new disclosure that Raimon is providing you, you will see that those CapEx are fairly interesting, and this goes to Simone's point that we invest with good rationality in terms of capital allocation. And then the efficiency CapEx and efficiency CapEx are driven both from other rationalization and these are relatively simple to. So I think that's part of the answer will be starting going through the new representation we've given. Lanco I'm a strong believer of And I think that Cellnex will be, again, a first mover in this. So on 1 hand, there is a defensive element, and there is an effectiveness element -- and then I answer to your question. So the defense development is in Europe, there are smaller land aggregator that are fairly aggressive and fairly, I would say, hostile -- some of them, even with money of large fund and private equity that I think could put better their money because having a large private equity using predatory attitude, it seems a little bit a poor strategy for a large private equity -- but -- so this is a defensive answer. But there is also in terms of effectiveness. If you are dedicated, if you wake up in the morning and you know that your scope is buying land, guess what you do, you buy land. If it is 1 of the many things that you have to do, you will share your time with the many things you have to do. So I think that we can become much more effective. That does not mean that we have to buy every land on the planet. We have to buy the most valuable land where we have the most valuable tower, so ABC analysis. The contract will be a mirrored contract. So the contract will be mirrored. So I have a 30 years contract with my anchor tenant. I make a 30-year contract with us. So we want to match as much as possible in order not to leave unnecessary risks or not to -- and normally, we have very long contracts. So what we can get to the [indiscernible] is even more predictable source of resources and a very good credit merit possibly this company could have a dedicated capital structure because the risk of this sector is even lower -- and possibly, it can attract the attention of even lower return capital.

[indiscernible] UBS. I've got 2 various questions. One is just following up on this you mentioned, first of all, there are going to be some tax efficiencies, if you could elaborate on that. And then just looking at the overall expansion efficiency CapEx and most of it to date has been going into prepayments or renegotiations. But now I think you're going to be emphasizing more along acquisitions. So if you could give us an idea down the road of how this CapEx is going to be split among all the various different ways where you can optimize leases. That's the first question. The second one, just on M&A. So you helpfully gave us kind of a 1% percent of revenues at risk from the 3 deals that we know about. So can you just elaborate in terms of that 1% being is that, for example, renegotiations of current contracts? Is that canceled build-to-suit contracts that are -- just some color on that. And then on that also, so you mentioned that there are some RAN sharing productions in many of your contracts, but you also assume growth from RAN sharing in terms of revenue. So if you can explain that, please?

Okay. So you take the second? Sorry, again the first? Lease. Well, in this moment, in this very moment, we are locating between acquisition -- so first -- the lease number, it's not only land lease, there are duct lease. There are many things inside the lease. And so the first thing that we have to do is to take the lease portfolio to decompose the lease portfolio and say, okay, each of these component needs a different approach. Duct is a regulated asset. And my counterparty is Orange on a regulated asset. So you can easily imagine that my level of flexibility with Orange on the regulated asset is 0 or proxy to 0. But there are other possibilities that are very interesting. And here, you have the possibility of the acquisition, the possibility of the prepayment and the possibility of the right of surface, there are many possibilities. So let's take how much we allocated in the past and how much we could think to allocate in the future. In the past, we allocated approximately south of EUR 100 million per year in terms of acquisition, and more or less half of it in terms of efficiency, cash advance and whatever. I think that in terms of acquisition, we can go at least for twice as much. So something north of EUR 200 million. And on cash advance, you are in the hand of your counterparty. So the number we saw today can be increased, but not dramatically increased.

Yes. So the point of M&A consolidation. So just to understand the analysis we do is basically we take how much of our PoP the first analysis are protected and unprotected based on our MSA. If they are not protected, how much of our PoP between the 2 entities that may emerge or consolidate are within our towers. So if 2 PoPs in 1 tower, the probability to lose one is obviously more than probable. Then we look at how much of our PoPs versus the other tower cos. And then if they are closed by the nonprotected PoP, we will imagine how much we put a probability, how much we stay with us, how much will come to the other. So to your question, the 1% is not linked to build-to-suit. The big, big part of build-to-suit, if you remember, the flag of [Simone] are in France and in Poland, where there are a huge need for new infrastructures. So what we do is -- what I just explained is not built-to-suit that are being avoided. This is about PoPs that we may lose. Again, we may lose. This is the worst case of [non protected] for these 3 geographies.

Sorry. But what normally happens is that, look, it's physically impossible that you put the clients of 2 operator in 1 network because the network will explode. So normally, what we do is we allow some decommissioning and we swap for some densification. So it's wrong to push the CTO in a direction he doesn't like. It's much better to go in the direction he likes and to solve the problem he has. The problem he has is I want a strong network of where there is the concentration of my client. And so what we tell them is, okay, why don't you dismantle this, and in exchange of this fee we give you this where you can strengthen because it's a Downtown London. And this works. And it's exactly what we are doing in this moment in case the 3 U.K. Vodafone merger happens, Vodafone committed to have a much more powerful combined network but that does not come as a miracle. So they have to put new sites. So customers, and you may prevent me to our future growth. I want to be protected. So my cost of my loss of cost opportunity needs to be protected. So in some cases, either they cannot trencher and we need to sit and to negotiate. In some cases, they are foreseen to enter, but there is a multiplayer that we will not disclose for commercial reason. There's a multiplier of our [indiscernible] fee, which in the end represents an upside for us. So it's not going to be 2, but it's not going to be one.

It's Richard [indiscernible] from Deutsche Bank. Two questions, please, and a quick follow-up on the land code. I think you said initially there's only 10,000 sites in that vehicle. I think current ownership of land is close to 10%. Long term, you said 20%. So the question is, is it still 20%? Or is that target going higher please? And secondly, on the active sharing, given some incremental detail now. But how receptive are the MNOs to sharing because I think back it was 2021, initially the Poland deal when you talked about it and being able to port it across some of the other markets. So how are the discussions going? Is it some reluctance from mono or are they more or...

In the U.S., I was talking with -- during the Mobile World Congress, I met 2 of my U.S. peers, and one was at 65% land ownership and the other was at 45% land ownership. And when I told him that we were at 14%, he had a sort of a little smile on the face. So like a poor guy. And so bad. So I think that if we go to 20%, it's not enough. I don't think it's enough. Forget we would never be at 70% or neither at 45%. So this is Europe. This is not -- and sorry, I say this is Europe, not because I pretend to be better or worse, but they bought the land when they were building the tower, which is the best moment for buying the land. I build the tower. I'm discussing with the farmer if it gives me the access to a small piece of his land, maybe that I can convince him to sell it. When the farmer is -- the life of the farmer is fairly tough. And when you -- when he gets money doing nothing, No, maybe he likes. So it's not so obvious then. I add that Europe has an incredibly complex legislation for real estate. So I make an example of France. If you wanted to have a contract longer than 12 years, you have a long list of taxes that make a long-term contract, not particularly tax efficient. Now we have to consider that Europe is Europe. So we have to face different things. But yes, to your question, 20% medium term is not a good target. On the second question, run sharing. Well, look -- I think that everybody at a certain point of life should face the reality. So when you have the ARPU at EUR 20 -- the reality is that I feel rich enough for having a certain cost structure. When the ARPU goes to EUR 12, EUR 13, [EUR 97]. So I was watching an advertising of an Italian advertising at 795 VAT included. 795 for 200 gig EUR 795, 18 included? So it's difficult. So you needed to start sharing infrastructure. You have 2 chances. You kill the marketing guy or you give more flexibility to your CTO. And I think that giving more flexibility to the CTO will be the new normal. I personally -- I'm not a big fan of the joint ventures. The joint ventures in which normally joint ventures are geographic joint venture. You do the North, I do the South, you do the East, I do the West. I'm not a big fan. I prefer to have -- okay, you are in the driving seat, I'm on the backseat. That's it. So you drive if the port is good, is your merit, the port is better your fault. But at least it's clear. So I think that run sharing has a big pro. It's clear. It's efficient and it's clear. Joint venture are, I think, less clear, maybe as efficient but less clear. And in Poland, we are trying to understand if there is a third way for the time being with our anchor clients, you have in front of you the CEO of Poland, so I can -- and it works. It works good. We are having good returns. By the way, returns are interesting. So...

David?

It's David Wright from Bank of America. I guess a tangent to the question you just asked, [indiscernible] industry group recently with some CTOs of the big European telecoms companies. And one of the one of the things they're currently looking to do is to retire aged to mobile network, and we've seen the process of retiring 3G networks almost complete across Europe. And of course, the other dynamics they're currently undergoing is they're pursuing open RAN technologies. But of course, open RAN doesn't support 2G and they would quite like to decommission some 2G. One of the solutions proposed is whether 2G could be minimalized and passed down to the towercos, who could even run minimal networks for emergency services, et cetera. Is that something you've ever even debated? Thought about? Does that seem interesting?

Is it logic? Yes, it's very logic. It's easy? No, it's not easy at all. I'm sorry, it's very logic because at the end, you can simply switch off -- it's not true what I was telling you before. So it is possible for a single 2G network probably to carry the traffic of an entire country. So every 2G network is much more powerful than the real need 2G of a single operator. So the truth is that the only time I personally try to approach one MNO, the CEO said yes and the CTO said no. There were even more complex, more complication about the spectrum allocation. It depends if the spectrum can be reallocated, how you split the benefit on the spectrum, et cetera. So there is a strong rationale. It's totally unclear how to make it. The solution is one of the MNO running and giving national roaming to the others or having a third party giving equal access to the others. I have not the answer. I have not the answer. In this moment, there is not a business case in this sense. The fact that 3G is -- has been switched off, I'm less enthusiastic than what you said. Is in the process of, but it's not, it's not -- if you -- the Nordics they are doing, Germany they're doing, just you go to Italy they're not doing, France they're not doing, Spain depends.

Sorry one more question. If that's possible, sorry, 1 additional question. On the indoor assumptions on DAS, small cells, et cetera, how are you considering the resilience of Wi-Fi within that debate, going to WiFi 7 incredibly sort of out graded technology, much more efficient seems to be challenging in the kind of indoor DAS solutions. How do you perceive that battle?

Well, it's a long story in reality because WiFi...

WiFi 7 is not yesterday.

Yes. So I think that are 2 different scenarios. One is on unlicensed spectrum, generally speaking. The other one is on licenses breakthrough. I don't think that they are really competitors. We have some experience -- we sold some experience of coverage on WiFi. But I think that there are 2 parallel markets. I'm not substituting each other. So I see more difference between Small Cell and DAS than between -- because the indoor coverage would be done by -- with DAS systems and the Small Cell, multi-active multi-operator is something very recent. So I think that in that case, we will see a difference. But on the indoor coverage or event coverage, you cannot think you use WiFi sincerely. In my personal opinion because you have to register, then you to give your data. It's something that is not so comfortable on a big base.

And then the quality of service is not going to be able. So it depends what do you need it for? So are you -- do you need it for something that is really best effort? Okay, maybe that you can do it, it's cheap and then so. But if you need any level of quality of service, I think that -- sorry, don't misunderstand, WiFi 7 works beautifully, but it depends which kind of service you're going to deliver. If you wanted to have a carrier-grade service, I moved up.

If you want to build -- yes, there are many, many aspects. You can appeal in that case. So it could be for port, for example, are using WiFi, not my work is quite bad, but they're using WiFi, not -- for sure, not 7 nor 6 [indiscernible] it's 5, but the cellular coverage is much more reliable generally speaking.

Jakob, question?

Jakob Bluestone from BNP Exane. Two questions, please. Firstly, on your organic growth where you said 20% of growth is uncontracted. Just hoping you can maybe expand a little bit on that just to give us bit of confidence about the growth outlook. Specifically, is that 20% mostly coming through things like DAS, Small Cell brand as a service and fiber, so things that are much more in their infancy. Or is that sort of evenly spread across all your revenue drivers? And if it is very reliant on these sort of newer revenue streams coming on board, can you maybe just help us understand how does the 10% to 15% growth that you're guiding in those segments compared to what you've been doing until now? So that's the first question. The second question is, you've made a number of comments today that you would be keen on potentially starting the cash returns earlier. Could you maybe just help us understand what would you need to see to do that?

Yes. So I'll give you a short answer on the first, and then I leave to Vincent to elaborate. Now the growth is going to be across the portfolio. Otherwise, you would -- we wouldn't keep the 80-20 at the end of the 5-year time. So most -- so the bulk will be from towers, but given the relative sizes, the growth from other, in particular, from active is more important in terms of CAGR vis-a-vis. So if you take the overall goal is the vast majority comes from the tower. But if you take the single CAGR, the CAGR of the active is higher and then I leave. But before leaving to your answer to your second question. So then I leave to Vincent. I think that disposing Ireland and making our homeworks for the rest of the year, we go to investment grade because we -- the direction if we don't do something particularly silly, it goes to the investment grade. But we said also that we want to stay investment grade. So if in 2025 has started using significant resources to -- I'm not talking about the dividends we are paying today, okay? I'm talking about something more material. You see that you make some math and you see that I'm going very close to the limit where they invest more, and the rating agencies will knock on my door and said, "Hey, guy, did you forget something." In case we can have multiple portfolio rotations you will see that the net effect of the lower EBITDA and the higher cash since we are selling normally at very decent multiples give us flexibility to have something that we can do in 2025. Now what we can do in 2025 is to anticipate the dividend or possibly in 2025 the share price will be still attractive enough to do something different like a share buyback. I would love to have a no alternative than paying dividends because it means that my share price is so high that there is no share buyback option. But I think that it's possible that if we have an excess of resources, as I told you, take the box of Ireland. Now we are going to work on Austria. Austria, we're not forced to sell Austria. If we don't find a good offer, maybe that -- I can't promise you that I will make the sale of them. If you ask me what is my gut feeling. My gut feeling is that there is a scarcity of good portfolio assets as Andrew was saying before, it's possible that someone shows up with a good price. If someone shows up with a good price, as I said before to the question, I don't see in this moment any industrial investment that calls my attention so exciting. And therefore, I think that if it was today, a share buyback would be credibly something happening in 2025. But one thing is telling you what I predict and different is what I commit. So it's 2 different terms.

On the question, sir, I discussed a lot about the 80%. And your question now is on the 20. So the 20 to be extremely clear, mainly 60% to 70% is about towers. How do we capture this growth? We have a pipeline as we speak, of requests from our customers. It takes us 12, 15, 18 months. So what we know is the pipeline is full and the delivery for the coming 1 year, 1.5 years is already secured even if it's in the unsecured part. Now where does it come from? We said we'll do 30,000 PoPs, half more or less from PoPs new colos and all from build to shoot. So this 20% is mainly composite towers on new PoPs. We have already a pipeline secured and we know based on the same plans of our M&A that we will have 15,000 PoPs in the coming 4 years.

Which requires CapEx for tower upgrade, which requires permits, which requires activities.

And on the point of what is behind the 10% to 15%, so the growth is high. The absolute number is low. So on the DAS, Small Cell as RAN as a service, clearly, the biggest value driver we been RAN as a service of Poland because 5G will be deployed, and we know that our customers will need more emission services. This is the first. And on the fiber connectivity and housing services, we mentioned our project in France next loop where we will have a lot of revenue coming. We have done already a lot of deployment, and now we will have the return of our invested capital, and this will be the biggest value driver of this line to the 10% to 15%.

Georgios?

Georgios from Citi. Two questions. The first one is on strategic [auctions]. And earlier, Marco, you mentioned that in this interest rate environment, maybe pan-European consolidation could take time. But I just wanted to ask a question around mergers because obviously, with similar balance sheets, it may be earlier rather later that these things can happen. So curious to hear from you whether that could be something of interest. And also, historically, Cellnex was adverse to the idea of a major telco being a major shareholder whether that aversion remains or whether maybe there could be more flexibility in having a significant shareholder that can also be a customer. And the second question is more on the guidance for '24 and '25, I think, is Page 76. When I look at the components between EBITDA and recurring levered free cash flow, it looks like there is no increase between the 2 years. And conversely, there is a significant increase in the investments you make between recurring levered free cash flow and free cash flow. So even though build-to-suit are supposed to be trending down, free cash flow is not growing as much as a recurring level free cash flow. So I'm just curious what's driving that and whether the 12 may be like in terms of significant ground lease acquisitions you are planning specifically for '25?

I'll take the first, you take the second?

Or may we need to come back quite detailed. So go ahead.

I'm not against merger per se. And so if it creates value to my investors, I'm not against, I guess, end solution. Simply, I don't see it coming. If you look at Europe, that there were solutions that are not fitting particularly well with us. Let's take total, and I cannot do nothing with total because in France, it will become 85% market share, so impossible. If I look at Vantage, we are overlapped in several areas. So I'm overlapped in England, I'm overlapped in Italy, I'm overlapped in Spain, I'm overlapped everywhere. So the one which makes a lot of geographic sense is JD Tower, but I think that you should ask to the guys who paid 28 times how they think to make the returns. So it's not me possibly. And with reference to the presence of an MNO inside the share capital, it depends. What are the governance rights that you associate to this portfolio? So if you give a dominant governance rights, I tell you that I see more minus than plus because we have very diversified client base and the client will tell me, are you an independent player? Are you a branch of my competitor? Who are you? If it comes with some mitigation on the governance rights where you are an important shoulder with all the rights to express your voice, but not dominantly, we should be agnostic and realistic. So if it creates value, I'm not. But it cannot turn into a minus in the relation with the existing clients, which, by the way, are giving us, I think, a decent cash flow for the coming years.

On the free cash flow, I will try, Georgios, if I'm not answering, please, please ask the question again. I would say that the main difference. I mean, clearly, the core cash flow is growing. So '24 compared to '23, '25 compared to '24. It is to maybe the phasing of the bits CapEx may be having an impact. So what we are expecting is EUR 1.5 billion of [indiscernible] CapEx in that was last year. So it's going to be EUR 1.3 billion in the EUR 24 million, EUR 1.5 billion -- sorry, EUR 1.1 billion in '25. So maybe the core cash flow is increasing, but because of the more intensity of CapEx, you can see that the free cash flow in '24 and '25 remains flat. If that makes sense, that should be the answer. Emmet, over there.

There's a gentleman there and the one there. One there and one there.

Just in the interest of time, I'll just ask 1 question, please. And the question is on secondary tenancies you kindly gave some pretty good details on the renewal of the contract with Telefonica, your anchor tenant in Spain. Can you talk a little bit about new contracts that you're signing with secondary tenants and what some of the terms are on those contracts? And what I'm thinking of, is there any sign that telco towers in Europe are getting a little bit more pricing power when it comes to the yields that you receive from the telcos because there's obviously a very big gap in the discount between what the primary tenant pays and the secondary tenant. So is there any sign that the gap is closing or will it close over time? What's the average duration that a secondary tenant signs on for. And then lastly, if there were to be consolidation, does that secondary tenants have the right to walk away from the contract earlier than the stated contract terms?

Okay. So on the price difference between an anchor tenant and a secondary tenant, I'm sorry, but the problem is not industrial, it's financial. So with an anchor tenant, I paid upfront on the value of your contract. So there is an industrial component, which is, let me say, cost driven and there is a financial component, which is what's the value of the contract. So the rental fee can be EUR 15,000 or EUR 55,000 per year, it depends only how much I paid you the tower upfront. So let me say that the market of the anchor tenant is a market per se. It depends on what is the number you want upfront. And I tell you what is the anchor fee. On the second tenant, it's a market. This is the market. The market is the market of the anchor tenant. So your question is very interesting. So on the towerco gaining more power. When the market is very fragmented, the answer is no. When the market is more concentrated, I think that it's more balanced, which does not mean that we are squeezing the MNO in a territory where they're not comfortable. Simply, they have there are -- again, what Simone was saying, there are less opportunity to have overlapping of existing infrastructure. So there's my tower or there is a [indiscernible] Tower. It's fairly unlikely that we have 4 towers. It's unlikely. And which, for example, in Spain, some time, we have 3 towers in 1 square kilometer, which is fairly absurd.

On this question of the secondary tenants so to complement Marco, this is really a national discussion. So it's not only the bargaining power, but the growth that there is in the market. So in the end, the discussion we're having with customers, if you want to lower the secondary tenants, we need to have growth, and this needs to be net-net positive. On the tenor, we have again, very specific. We're signing so the 10% versus 10% with, for instance, with Telefonica, which were related to MSA. On secondary, we are about to sign a 10-year contract. So you have -- and there is in some cases, you want to exceed you have termination fees of several years, also depending how is funding the CapEx of the strengthenings, if there is. So there is no -- sorry to answer, but there is no global answer. What is clear is, obviously, if there is growth. Obviously, as anybody who want to capture the growth, and we want to be competitive on price.

Sorry, before getting the next question I want to make an announcement. S&P just awarded us with the rating -- with the investment grade. We are investment grade. We delivered 9 months before the end of the year, it's a great -- so you were looking at me. It was a little bit -- it was a bit uncomfortable because it should arrive. And we were taking more questions as possible to let you pick it to keep you here. Now if you want to go home -- but in any case, it's quite important to us. I think that what has been awarded by the rating agencies is not only the sale of Ireland. It will be trivial if it was under this. I think it's the commitment of staying rational. It's the commitment of having a clear capital allocation, a prudent capital allocation. And so that's a great work of the team, I think, especially all the people that you don't see every day on the stage. So there is -- believe me, an incredible quantity of work behind it. So thank you, guys.

With this, I don't -- I think it's the best moment just to...

I think there's one more question.

Perfect. You're the CEO. So when investment reorg, James? Yes.

James Ratzer from New Street Research. Firstly, many congratulations for that announcement we're just able to make. So it's interesting, if I could just focus on another area of upside you talked about today, which is the co-location to suit, which I think is quite a kind of new phenomenon for you and just kind of started in the last quarter, I think, in a few of your markets. That's despite the fact you've done BTS now for 4 or 5 years. So I suppose what I was interesting is what's changed now to make that possible. And you talked about a 30% saving to come from that. What's that 30% in relation to? Is that to the relation or in relation to the cost of 2 towers you would build? Or is it just to the single tower? And then if I could ask us kind of just on a second question just on the landco topic. I think in the past, I've heard people say these deals are done at around a cost of 7x the annual lease. Is that still appropriate? Where are you seeing the kind of market rates at the moment? And in the past, that cost, I think, has been booked through M&A CapEx i.e., below the FCF line. Is that still likely to be the case before. So the kind of EUR 200 million you're talking about comes out below FCF.

And very good question. The last we will live and see because I agree with you that having good CapEx above the recurrent -- between the recurring free cash below the figure. It's a nightmare. Not only for you, believe me, even for me when I have to make the budget. Thanks, God, that I'm a former CFO because otherwise it would be an act. So your first question, I think that the biggest mistake was that -- was our fault. I tell you. We were convinced that we had to convince the CTO that it would be faster to put an antenna on an existing site than on a new site which, by the way, is not obvious that you convince the CTO. The truth is that you have to talk with the -- with 2 people, with the CTO and with the CFO. So as I said before, a BTS is a part of an industrial commitment and a part of the financial commitment. If I colocate you and I don't give you the financial part of the contract, you're not happy because you say, okay, good, industry is working, but I'm losing a possibly interesting financial lever that I'm using, let's say, for buying the network, for buying the active. So what we are saying is let's split the contract. You're not going to pay -- so we save the building on the tower, the maintenance of the tower, the rental of the land, et cetera. We share part of this benefit but I leave you the financial component of the contract. So if a tower should close -- let's shoot a number, 250,000 for BTS. For a CTS, it would have been 100 building the tower and a 150 financial part of the contract. So what I do is I leave you the 150, you will -- with me with a second anchor tenant contracts, so same duration, et cetera, possibly you're not going to pay EUR 22,000, you're going to pay EUR 16,000. So CTO is happy, CFO is happy and we can convince. Then we need to have the 2 towers otherwise we're talking about nothing. So part of the responsibility was we did not understand properly the needs of the customer. Sometimes you think that the customer is not part of the equation, which is fairly wrong. So this is the first question. The second question was about the land. I wish it was 7x. Believe me, you can't imagine how much I wish it was 7x. No. Today, it goes between 10x and 12x with some markets that are outliers in both directions. There are some countries where it costs less and some other countries where it goes much more or basically impossible. If you go to a Swiss farmer and you try to convince him to sell you a piece of land, good luck. Go for me, please. So this is -- but even at 10x, 12x, it remains a good deal. I'm forgetting one part?

That I think at the land is going?

Yes. For the time being, it remains as it is today. And then our CFO will come one day telling me a lot of bad words, and I will listen to him.

We'll have time for the last one?

Yes, sure.

[indiscernible] from Catalyst Fund Managers. Just a quick one on your investment hurdle rates. You talked about the WACC.

Sorry, the investment?

Investment hurdle rates, the WACC plus. Just give me an indication of the range of the risk treatment. So what would be your lowest risk premium versus your highest risk premium?

Yes. Let's say that when you are very cheap, you are super high single digit. So very close to 10%. It's towers in France with a good anchor tenant. So you put all the favorable possibilities. -- and you land to 995 and active in Poland, bah, bah, bah and well in the teen.

Mid-teens, low teens.

Mid low teens. More Mid than low. If you want the number, if you come here, I tell you the number.

Excellent. Now we have reached the end of the...

Okay. Thank you very much. Thank you to all of you.